Gas rallies

Prices are on a bull run and demand looks robust

After spending much of the early part of the year struggling to crack $2, US natural gas prices have mounted a comeback. Heading into October, Henry Hub prices had doubled from their early March lows and broken through $3 per 1,000 cubic feet for the first time in more than 18 months. It has come as much-needed relief for ailing natural gas producers. The multi-year run up in natural gas production was finally broken after a sustained period of sub-$2 prices. The number of rigs drilling for gas in the US was down to just 92 in late September, less than half from a year earlier and not nearly enough to keep output growing. Total production in late September was 79.7bn cubic feet per day, down