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Henry Hub Back to Flat with Larger than Normal EIA Build Expected

NATGAS

US Natgas trading back near to flat on the day ahead of an expected larger than normal build in EIA inventories data due at 10:30 ET (15:30 BST). Uncertainty over future US production growth amid a decline in rig counts and drilling activity is providing some market support after seeing record output earlier this year.

  • Front month Henry Hub has rallied since the start of June but remains below the peaks as high as 2.68$/mmbtu seen during May.
  • EIA inventories for the week ending 2 Jun are expecting a larger than normal build of +114bcf compared to the 5-year average of +103bcf.
  • Above normal temperatures across much of the US including the Gulf Coast region could support cooling demand in the second week of the current weather forecast.
    • US Natgas JUL 23 unchanged at 2.33$/mmbtu

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