Henry Hub Easing Back as Low LNG Export Flows Offset Dip in Production

Henry Hub front month pulls back from a high of 1.857$/mmbtu earlier today with curtailed LNG export flows set against lower domestic production while temperatures across the US are expected to rise above normal into the second week of April.

• US Natgas MAY 24 down 1.7% at 1.81$/mmbtu
• US Natgas OCT 24 down 0.8% at 2.58$/mmbtu
• US Natgas APR 25 down 0.6% at 3.04$/mmbtu
• Feedgas flow to US LNG export terminals are today estimated down at the lowest since January at 11.3bcf/d according to Bloomberg. A drop in supply to Sabine Pass and Corpus Christi is adding to the ongoing works at Freeport.
• US domestic natural gas production yesterday was down at 99.6bcf/d and in line with levels seen this time last year according to Bloomberg compared to an average of 100.4bcf/d over the previous week.
• Lower 48 natural gas demand is today estimated just above normal at 78.6bcf/d today according to Bloomberg. Demand fell to a low of 74.6bcf/d over the weekend. The latest NOAA forecast shows a mixed picture with warm weather in central areas and below normal in the west in the 6-10 day period but with both east and west coast temperatures warming above normal in the 8-14 day period.
• Export flows to Mexico are today back up to 5.7bcf/d after falling below 5bcf/d in recent days according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was slightly below normal at 387k on Apr. 1 but slightly up from the average level seen last week.