Natural gas price differentials to Henry Hub narrowed at most hubs in first half of 2020

The average spot price differentials between regional natural gas hubs and the Henry Hub, also typically known in the natural gas industry as the basis price, have narrowed at many trading hubs in the first half of 2020 compared with the first half of 2019. The natural gas basis reflects the difference between the price of natural gas at the benchmark Henry Hub in Louisiana and the price of natural gas at another delivery point elsewhere in the country. The basis at key demand hubs (near population centers) narrowed primarily because of weather-related factors, but the basis at some supply hubs (near production areas) narrowed because of decreases in natural gas production. Declines in economic activity related to coronavirus disease (COVID-19) and its mitigation efforts generally further narrowed the basis at both demand and supply hubs.

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HEDGE accordingly