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Downward Pressure Remains on Henry Hub Amid Warming Weather

NATGAS

US Henry Hub is again seeing downward pressure from strong domestic production, healthy storage levels and an expected drop in demand due to a warning weather in the coming days while LNG terminal supplies have recovered from a dip yesterday.

    • US Natgas JAN 24 down -1.8% at 2.79$/mmbtu
    • US Natgas JUN 24 down -1.5% at 2.8$/mmbtu
    • US Natgas DEC 24 down -1.2% at 3.97$/mmbtu
  • US lower 48 natural gas demand is estimated down from the recent peak today to 97.5bcf/d according to Bloomberg but still above the previous five year range. Temperatures across the US are expected to warm in the coming days to ease the upside pressure on demand seen this week. The NOAA forecast shows above normal temperatures across central and western areas in the 6-14 day period but near normal on the East Coast.
  • Feedgas flows to US LNG export terminals are today estimated back up to 14.4bcf/d according to Bloomberg with a recovery in Sabine Pass terminal supply to nearly 5bcf/d after the drop yesterday.
  • Domestic natural gas production was yesterday still strong at 105.3bcf/d but below the record high of 106.5bcf/d the previous day.
  • Export flows to Mexico are today up to 6.1bcf/d according to Bloomberg.

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