Henry Hub natural gas futures for November are trading at US$3.01/MMBtu as of 2:30pm EDT Thursday afternoon. Natural gas futures have pushed higher this week, with yesterday’s close of US$3.023/MMBtu reaching a high not seen since January 2019. Prices are up over 20% since the beginning of October as colder weather patterns increased demand and natural gas production was reduced due to Hurricane Delta earlier in the month. The EIA estimated working gas storage was 3,926 Bcf for the week ending October 16th, 2020, following an injection of 49 Bcf. This report is in line with market expectations of 45-52 Bcf. Storage levels are now 9.6% above year-ago levels and, relative to the 5-year average, 9.1% greater.

In Canada, prompt-month futures for AECO are trading at C$2.96/GJ, while Dawn is trading at C$3.68/GJ. Futures prices for both AECO and Dawn trended higher week-over-week by C$0.18/GJ and C$0.53/GJ respectively. Canadian natural gas storage for the week ending October 16th, 2020, was sitting at 790.7 Bcf, after an overall injection of 12.6 Bcf, up 1.61% from last week and up 29% from last year at this time. October spot market prices for AECO 5a and Dawn have continued to rise with month-to-date prices of C$1.91/GJ and C$1.92/GJ respectively, an increase of over 25% week-over-week.

– Karyn Morrison, Energy Data Analyst

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