US Natural Gas Fundamentals Tighten Once Again

Henry Hub has weathered the recent sell-off in commodities fairly well... That's of course if you exclude the hideous drop it experienced the previous few weeks. After the Freeport LNG facility went down, the US gas market structurally lost ~2 Bcf/d of gas demand. At the time, we said that the US gas market just went from a one-sided bet to a mediocre one. But with the recent price drop and the surge we are seeing across the Atlantic (European gas prices), the US gas market has once again presented itself with a bit of asymmetry. This is especially the case with fundamental balances recently tightening.