Henry Hub at Lowest Since Jan. 2

Henry Hub has continued its decline throughout the day, hitting its lowest intraday level since Jan. 2. Henry Hub is down around 18% on the start of the week.

• US Natgas FEB 24 down -6% at 2.54$/mmbtu
• Warmer weather forecasts, coupled with a smaller than expected storage draw in yesterday’s EIA data have fuelled the bearishness.
• The EIA weekly gas inventories for the week ending Jan 12 showed a smaller than expected draw of -154bcf but still greater than the seasonal normal of -122bcf.
• Domestic natural gas demand remains above normal today at 115.8bcf/d but is likely to decline into next week with the arrival of warmer weather.
• The 6-14 NOAA forecast is still showing above normal temperatures across the US with lower 48 temperatures rising above on about Jan 23 after the cold this week.
• Feedgas flows to US LNG export terminals have recovered to 13.92bcf/d today.
• Lower 48 dry gas production continues to recover from the severe cold disruption this week up to 100.5bcf/d.