U.S. natural gas prices continue to recover, with front-month Henry Hub futures breaking above $2.50/MMBtu and trading to its highest level since January.
EIA storage data yesterday showed that natural gas inventories increased by 70bcf/d over the past week, less than the 77bcd/f expected, and below the 5-year average of 90bcf/d.
While total US storage is still comfortable at almost 31% more than the 5-year average, the gap is narrowing, falling from a little more than 33% last week.
The return of all three trains at the Freeport LNG export facility will have provided further support to the US natural gas market.
Source: ING
