Inventories may drag on US natural gas prices
Significance US natural gas prices have surged over the past six weeks thanks to falling supply, strong demand from the power sector and rising exports. The uptick in prices has provided a glimmer of hope to gas producers in the United States, hard hit by a prolonged slump in prices. Impacts Declining gas production and rising demand will mean increased pipeline imports from Canada over the coming months. Mexico will pay higher prices for US natural gas imports as the Henry Hub benchmark, potentially hitting demand. US producers that have more gas-producing assets in their portfolio will benefit from rising prices.