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Henry Hub Eases Back After Rally on Storage Data Yesterday

NATGAS

Henry Hub front month eases back following a rally yesterday after a smaller than expected build in US natural gas storage inventories reported by the EIA.

    • US Natgas JUN 24 down 0.4% at 2.29$/mmbtu
    • US Natgas NOV 24 down 0.3% at 3$/mmbtu
    • US Natgas MAY 25 up 0.5% at 2.97$/mmbtu
  • The EIA weekly gas inventories for the week ending May 3 showed a smaller than expected injection of 79bcf compared to the seasonal normal injection of 76bcf. US storage inventories continue to hold a strong surplus with total stocks at 2,563bcf compared to the previous five-year average of 1,923bcf.
  • US terminal feedgas flows are today up to the highest since March 23 at 13.38bcf/d according to Bloomberg with estimated supply to Freeport LNG over 2bcf/d suggesting that the facility’s third train has started up.
  • US domestic natural gas production was up slightly on the day to 99.85bcf/d yesterday according to Bloomberg to recover back just above the average seen so far in May.
  • Lower 48 natural gas demand remains unchanged at 67.7bcf/d today according to Bloomberg with mild weather expected across the US throughout the coming two week period.
  • Export flows to Mexico are strong up at 6.9bcf/d today according to Bloomberg.
  • Nymex Henry Hub daily aggregate traded futures volume was the highest since late Feb at 752k on May 9.

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