At a good $2.4 per mmBtu, US Henry Hub natural gas is at its lowest price in at least three years.
Weighing on its price are above-average stocks, as US gas production has been faring well so far because there have been no significant outages due to hurricanes.
Therefore, the low level of drilling activity will have a dampening effect on production in the medium term and thus lend support to the price, which in the upcoming heating season will initially be determined primarily by weather conditions, says Commerzbank.
