Our June Chart of the Month examines shows a possible negative relationship between WTI and Henry Hub forward prices.
COVID-19 has put the spotlight on the relationship between WTI and Henry Hub. Though both fell in parallel between January and March in anticipation of demand drops, Henry Hub then rallied to well-above well COVID-19 levels as WTI continued to fall. Then, when oil then rallied, Henry Hub fell back.
Is a negative forward price relationship emerging between the two benchmarks? And what are the reasons behind the pattern? Find out with June’s Chart of the Month.
This is part of our regular ‘Chart of the Month’ insight series.
Every two months, CME Group publishes exclusive insight from gas market analysts at Timera Energy. Each chart looks at a lesser-known aspect of the global natural gas markets, coupled with a sharp, succinct explanation. If you are a gas trader looking for an edge, sign up to download the latest chart.
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