Henry Hub Dips on Cooling Weather Forecast

Henry Hub front month is trading slightly lower today but remains higher in the month with support from cooling demand on the Gulf Coast and from lower domestic production this month. LNG exports are still curtailed by export terminal maintenance with the return timeline still unknown.

• US Natgas JUL 23 down -0.2% at 2.59$/mmbtu
• The latest EIA weekly gas inventories for the week ending 16 Jun will be released this afternoon at 15:30BST. The expectation is for a build of +89bcf compared to a build of +84bcf last week and the seasonal normal of +76bcf.
• The latest US weather forecast has cooled slightly from yesterday, but above normal temperatures are expected to remain in the Gulf Coast region throughout the 6-14 day period. The temperature forecast for the east coast has however moved back below normal especially in the 6-10 day period. Domestic demand has held mostly above normal in the last couple of months but is today back near normal at 66.0bcf/d according to Bloomberg.
• Domestic US production is still restricted by pipeline outages with today estimated at 98.9bcf/d in line with the output seen since 13 June according to Bloomberg.
• Delivery flows to the US LNG export terminals are just slightly higher today at 11.0bcf/d. Works at Sabine Pass LNG terminal are limiting supply by about 2bcf/d compared to levels seen back in January to April.
• Export flows to Mexico are estimated above the five year range up at 7.0bcf/d.