Henry Hub Continues Fall

Henry Hub has extended its losses further during US hours, following EIA data showing higher inventory surpluses than expected. A dip in LNG export flows and warmer weather in the Eastern states is also adding downside.

• US Natgas NOV 23 down -3.5% at 2.95$/mmbtu
• US Natgas APR 24 down -2.9% at 3.05$/mmbtu
• US Natgas OCT 24 down -1.9% at 3.41$/mmbtu
• US Natgas 1-2 spread up 0$/mmbtu at -0.37$/mmbtu
• The latest EIA weekly gas inventories for the week ending 13 Oct showed a build of +97bcf compared to a Bloomberg survey expecting a +83bcf build and the five-year average for this time of year of +85bcf.
• The total US inventories remain above normal at 3,626bcf compared to the average of 3,429bcf.
• US domestic natural gas production was yesterday down at 103.0bcf/d from the start of week high according to Bloomberg but still above levels around 99.5bcf/d from this time last year.
• Natural gas deliveries to US LNG export facilities have dipped slightly to 14.1bcf/d today according to Bloomberg with decline it supplies to Sabine Pass although still high compared to flows below 13bcf/d earlier this month.
• Lower 48 dry gas demand is relatively unchanged on the day at 67.6bcf/d today according to Bloomberg with a mixed weather forecast for the coming two weeks. Central and Eastern areas are expected above normal in the 6-10 days period before cooling into week two. Western areas are expected to remain near of slightly below normal with cooler weather in the Rocky Mountain region.
• Export flows to Mexico are slightly down on the day to 6.13bcf/d today.