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Henry Hub Declines As Global Prices Ease Back From Yesterday's Surge

NATGAS

US Henry Hub is easing lower today as global gas prices fall back from the surge seen yesterday. Natural gas prices are seeing some support from low wind power generation and a warmer shift in the weather forecast. Front month is holding above the lows of around 2.15$/mmbtu from late last week.

    • US Natgas JUL 23 down -1.3% at 2.22$/mmbtu
  • The latest US 6-10 day weather forecast is relatively unchanged but temperatures in the 8-14 day period have moved above normal in the East Coast, Gulf Coast and central regions to potentially increase air conditioning demand. Domestic demand is today holding just above seasonal normal at 65.1bcf/d according to Bloomberg.
  • Delivery flows to the US LNG export terminals are largely unchanged from yesterday at 11.8bcf/d and near the lowest since the start of the year due to reduced supplies to Sabine Pass due to maintenance.
  • Domestic production was yesterday up at 100.8bcf/d according to Bloomberg in line with the average over the previous week but up from a dip down to 99.6bcf/d on 3 June. Concern for future production growth remains with the latest rig count numbers still at the lowest since April 2022.
  • Export flows to Mexico are today estimated up at 6.4bcf/d.

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