European Divergence

While US prices are low, European natural gas has surged over 50% recently due to the loss of Middle Eastern LNG. This arbitrage is currently limited by existing liquefaction capacity in the Gulf Coast.

LNG Export Anchor

Record feedgas flows of 19 Bcf/d to US export terminals are preventing a total price collapse. Without this export pull, analysts believe Henry Hub would be testing the $2.00 level.