US NATGAS: Henry Hub Drifts Lower After Surge Yesterday

Henry Hub drifts lower after a surge yesterday amid a mixed weather picture and a softening in LNG feedgas flows this week, while energy markets assess the impact of new US tariffs.

• Lower 48 natural gas demand is down on the day back to near the seasonal five year average at 82.3bcf/d today, BNEF shows. Average lower 48 temperatures are forecast to drop back to near normal later this week and vary either side of normal through the remainder of the two week outlook. The NOAA 6-14 day outlook still shows below normal in the west but above normal in central and eastern regions.
• US domestic natural gas production is down on the day to 106.3bcf/d compared to 107.4bcf/d over the previous week, according to BNEF.
• US LNG export terminal feedgas is down again to 14.91bcf/d today, according to Bloomberg, compared to an average of 15.25bcf/d over the previous week. Sabine Pass flows are currently below levels seen in Feb. while Plaquemines supply has also dipped on the day.
• Export flows to Mexico are estimated to recover to 6.05bcf/d today after dipping lower in recent days, according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volumes was up at 846k on Mar. 3.
  • US Natgas APR 25 down 0.8% at 4.09$/mmbtu
  • US Natgas SEP 25 down 0.3% at 4.44$/mmbtu
  • US Natgas MAR 26 down 0.6% at 4.19$/mmbtu