Gas End of Day: Nat Gas Drives Higher After Larger Then Expected Stock Draw

US henry Hub prices slipped back after the EIA gas storage release at 10:30ET (14:30GMT) before recovering to new highs for the day.

• US Natgas MAY 24 up 3.4% at 1.78$/mmbtu
• Prices are supported after a higher than expected draw in the EIA data.
• The EIA weekly gas inventories for the week ending Mar. 22 showed a draw of 36bcf compared to the expectation for a draw of 28bcf according to a Bloomberg survey and the seasonal normal draw of 30bcf.
• US gas stockpiles, 41% above the five-year norm, will likely exceed the previous high mark at season's end according to Bloomberg analysis – pressuring prices to the downside looking ahead.
• Feedgas flow to US LNG export terminals are today estimated back up to 13.0bcf/d according to Bloomberg after a drop to 12.4bcf/d yesterday. The recovery is driven by a rebound in supply to Corpus Christi although Freeport and Calcasieu Pass flows remain below normal.
• Lower 48 natural gas demand is holding above normal up at 83.0bcf/d today according to Bloomberg and in line with an average of 83.3bcf/d over the previous week. The latest NOAA forecast shows slightly below normal temperatures across much of the US in the 6-10 days period but with central areas turning warmer in the 8-14 day period.
• The US could face an “explosive” hurricane season this year with as many as 25 named storms from June through November compared to a typical year with 14 storms, according to AccuWeather Inc.