Henry Hub Drifts Lower with Healthy Storage Set Against Cold Forecast

Henry Hub front month is easing back after a rally yesterday with a cold weather forecast for Jan set against a smaller than expected gas storage draw last week.

• US Natgas FEB 24 down -2.4% at 2.75$/mmbtu
• US Natgas JUL 24 down -0.3% at 2.82$/mmbtu
• US Natgas JAN 25 up 0.1% at 3.93$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 29 showed a below expected draw of -14bcf compared to the seasonal normal draw of -110bcf. The total US inventories remain well above season normal levels at 3,476bcf compared to the average of 3,095bcf.
• Domestic natural gas demand is up again to 103.7bcf/d according to Bloomberg compared to the five year average of around 93bcf/d. Below normal temperatures are forecast to spread across the US with the 8-14 day NOAA forecast showing below normal for most of the country.
• Feedgas supplies to US LNG export terminals are still strong and today estimated at 14.9bcf/d according to Bloomberg.
• US natural gas production is holding around 104bcf/d this week according to Bloomberg and below the average from December due to lower Appalachia flows.
• Export flows to Mexico are today at 5.6bcf/d according to Bloomberg.