ING notes US natural gas futures have firmed on supportive storage data and recovering LNG export flows after maintenance. However, Warren Patterson and Ewa Manthey judge the medium- to long-term Henry Hub outlook as less constructive than before the Iran war, as increased oil drilling is expected to boost associated gas output and keep the US market relatively well supplied through 2027.

Henry Hub pressured by supply

"US natural gas futures moved higher over the latter part of this week, with the latest storage data from the EIA providing a further boost. US natural gas storage increased by 95bcf last week, below the 99bcf increase expected and also lower than the 5-year average increase of 101bcf."

"Gas flows to LNG export plants have been picking up following seasonal maintenance, supporting prices. In the medium- to long-term, the outlook for Henry Hub is less constructive than it was pre-Iran war."

"Increased drilling activity on the oil side will lead to higher associated natural gas production, leaving the US natural gas market relatively better supplied through 2027."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)