Why US natural gas prices have weakened in November? - a podcast by Macro Crude

Henry Hub prices at the prompt have weakened in November. Four key drivers

Warmer than expected weather in the US (Temperatures are 24% higher than normal this month).
As Henry Hub prices increased above US$3/mmbtu level in October – this has incentivised more coal fired generation in the US (Exhibit 2 below)
Reduced power demand due to COVID restrictions cutting load by 2.7 GW nationwide.
Finally, US gas production has improved (chart of the day) – but they remain below pre-COVID levels of activity will be supportive for HH from re-visiting Q1 lows (at least until WTI remains below US$45/bbl).
Prospects for US gas balances improving from here hinges on temperatures normalising for the rest of the winter and COVID lockdowns easing in Q1 21.

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