Henry Hub Drifts Lower Ahead of Expected EIA Storage Build

Henry Hub futures are softer today ahead of the update EIA storage data which is expected to show the first build of the year. US gas in store is set to end the winter heating season at the highest level since 2016.

• US Natgas APR 24 down 1.1% at 1.68$/mmbtu
• US Natgas SEP 24 down 1.1% at 2.45$/mmbtu
• US Natgas MAR 25 down 1% at 3.19$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 15 will be released this afternoon at 10:30 ET (14:30GMT). The expectation is for the first build of the year of 6bcf according to a Bloomberg survey after a draw of 9bcf last week. The seasonal normal is a draw of around 59.5bcf.
• Total feedgas flows to US LNG export terminals is today estimated down again to the lowest since Mar. 5 at 12.56bcf/d according to Bloomberg. A drop in feedgas to Corpus Christi LNG by 0.7bcf/d on the day is adding to the ongoing curtailed flows to the Freeport terminal.
• Lower 48 natural gas demand is above the previous seasonal five year range up at 88.2bcf/d today according to Bloomberg. The NOAA 6-14 day forecast continues to show below normal temperatures across most of the US and with above normal temperatures on the east coast easing back to near normal levels at the end of March.
• US domestic natural gas production yesterday rose back up to 101.3bcf/d according to Bloomberg after falling to 99.2bcf/d on Mar. 19. Production this time last year averaged around 100bcf/d.
• Export flows to Mexico are today at 6.2bcf/d according to Bloomberg.