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Henry Hub Edges Higher After Pull Back Yesterday

NATGAS

US Natgas is edging higher today after a pull back yesterday driven by a correction downwards in European gas prices as well as a larger than expected build in US storage inventories. Global prices had surged higher on Wednesday in reaction to a potential drop in global LNG supplies amid the threat of strikes at Australia LNG facilities.

    • US Natgas SEP 23 up 2% at 2.82$/mmbtu
  • The latest EIA weekly gas inventories for the week ending 4 Aug showed an above expected build of +29bcf compared to the five-year average for this time of year of +39bcf. Total US inventories are at 3,030bcf compared to the average of 2,709bcf.
  • Lower 48 dry natural gas consumption has remained steady all week up at 75.2bcf/d today compared to the five year average of around 72bcf/d at this time of year. Warm weather has cooler slightly in the latest NOAA weather in the 6-10 day period but most of the country still looks to remain above normal throughout the coming two weeks.
  • LNG export terminal feedgas flows are unchanged from yesterday at 12.5bcf/d today according to Bloomberg data compared to an average of 12.2 seen so far in August.
  • US production is today estimated at 101.0bcf/d compared to average flows of 101.7bcf/d so far in August according to Bloomberg.
  • Export flows to Mexico are well above normal at 7.3bcf/d today.

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