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Henry Hub Drifts Lower Ahead of EIA Storage Data


Henry Hub front month is edging lower ahead of the updated US storage inventories today while LNG feedgas flows remain below normal.

    • US Natgas MAY 24 down 0.9% at 1.7$/mmbtu
    • US Natgas OCT 24 up 0.2% at 2.48$/mmbtu
    • US Natgas APR 25 down 0.1% at 2.96$/mmbtu
  • The EIA weekly gas inventories for the week ending Mar. 22 will be released this afternoon at 10:30 ET (14:30GMT). The expectation is for a draw of 28bcf according to a Bloomberg survey following a small build of 7bcf the previous week. The seasonal normal is a draw of around 30bcf.
  • Feedgas flow to US LNG export terminals are today estimated back up to 13.0bcf/d according to Bloomberg after a drop to 12.4bcf/d yesterday. The recovery is driven by a rebound in supply to Corpus Christi although Freeport and Calcasieu Pass flows remain below normal.
  • Lower 48 natural gas demand is holding above normal up at 83.0bcf/d today according to Bloomberg and in line with an average of 83.3bcf/d over the previous week. The latest NOAA forecast shows slightly below normal temperatures across much of the US in the 6-10 days period but with central areas turning warmer in the 8-14 day period.
  • The US could face an “explosive” hurricane season this year with as many as 25 named storms from June through November compared to a typical year with 14 storms, according to AccuWeather Inc.
  • US domestic natural gas production is today estimated back up to 100.05bcf/d according to Bloomberg after falling from a high of over 105bcf/d in Feb down to a low of 98.5bcf/d yesterday on March 27.
  • Export flows to Mexico are today down at 5.7bcf/d according to Bloomberg.

Source: Bloomberg

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