Sub-Vertical · Henry Hub & LNG Markets
Natural Gas Markets
Natural gas is one of the most weather-sensitive commodities in financial markets. Demand spikes in winter for home heating and in summer for power generation (air conditioning runs on electricity, much of which is gas-generated). This seasonal demand cycle makes natural gas prices more volatile than oil on a relative basis, and understanding the storage-versus-demand dynamic is central to reading price moves.
What it covers
Henry Hub is the U.S. natural gas benchmark, set at a physical distribution hub in Louisiana. GenHedge tracks the EIA Weekly Natural Gas Storage Report, LNG (liquefied natural gas) export terminal utilization rates, and the UNG ETF (United States Natural Gas Fund) for flow signals. European TTF (Title Transfer Facility) natural gas prices are monitored as a global pricing reference — since U.S. LNG exports now connect domestic and international markets.
What moves it
Weather is the dominant short-term driver — colder-than-expected winters spike heating demand and draw down storage faster than anticipated. LNG exports are the structural driver: as more U.S. export terminals come online, domestic prices become more tethered to global LNG markets. Storage levels relative to the 5-year average are the standard baseline measure — below-average storage in shoulder seasons signals a tighter supply environment heading into peak demand.
Key terms
Henry Hub
The primary U.S. natural gas pricing point, located in Louisiana. Henry Hub spot and futures prices (NYMEX) are the global benchmark for North American natural gas.
EIA Storage Report
Published weekly. Shows how much natural gas is in underground storage across the U.S. Below-average storage heading into winter = higher prices. Above-average storage = price pressure.
LNG
Liquefied Natural Gas. Natural gas cooled to liquid form for transport on tankers. U.S. LNG exports link domestic Henry Hub prices to global markets — a structural price floor that didn't exist a decade ago.
TTF
Title Transfer Facility. The European natural gas benchmark, priced in euros per megawatt-hour. When European energy demand spikes (especially post-2022), TTF and Henry Hub prices move in tandem through LNG arbitrage.
Heating Degree Days (HDD)
A measure of how cold it is relative to a baseline of 65°F. Higher HDD = more heating demand = more natural gas consumed. Used by traders to forecast weekly storage draws.
In the newsletter
The Natural Gas signal covers Henry Hub spot prices alongside the storage and weather context. It's a sub-vertical of Energy — the daily signal rolls into the broader Energy vertical in the newsletter, with this page providing deeper commodity-specific context for premium subscribers.
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