Healthy Supplies Push US Natgas to the Lowest Since Apr 2021

Front month US Natgas extends the decline to the lowest since April 2021 as healthy supplies weigh on prices despite a mixed weather forecast.

• US Natgas FEB 23 down -7.1% at 2.85$/mmbtu
• The update weekly EIA inventories data due later today is expected to show a smaller than normal draw in stocks. The expectation is for a draw of -84bcf following on from the draw of -82bcf last week. The 5-year average for this time of year is -190bcf.
• Below normal temperatures are expected across western and central areas in the 6-10 day forecast but are trending back towards in the 8-14 day period. Domestic demand is today estimated near normal at 98.7bcf/d.
• Production levels are well above average with yesterday at 100.9bcf/d although down from a high of 102.3bcf/d on 18 Jan.
• Natural gas deliveries to US LNG export terminals are today expected at similar levels to yesterday at 12.8bcf/d while exports to Mexico are steady at 6.6bcf/d.