Henry Hub Edges Higher Ahead of Expected Small Storage Draw

Henry Hub is edging higher today ahead of an expected switch in US storage withdrawals from very high levels in mid January to an expected draw today smaller than the previous seasonal five year range.

• US Natgas MAR 24 up 0.5% at 1.98$/mmbtu
• US Natgas AUG 24 down -0.4% at 2.45$/mmbtu
• US Natgas FEB 25 down -0.3% at 3.54$/mmbtu
• The latest EIA weekly gas inventories for the week ending Feb 2 will be released this afternoon at 15:30GMT. The expectation is for a draw of -75bcf according to a Bloomberg survey after a draw of -197bcf last week. The seasonal normal is a draw of -201bcf.
• Feedgas supply to US LNG export terminals is today still below levels seen in late January down at 13.0bcf/d according to Bloomberg. Flows are curtailed due to lower than normal supply to Corpus Christi and Freeport as well as a drop in Sabine Pass supply today.
• Temperatures across the lower 48 US remain generally above normal in the coming days before dropping back to normal or just below from around Jan 14. The NOAA 6-14 day forecast is showing below normal temperatures across the US except for the far west coast. Lower 48 natural gas demand is down on the day to 86.9bcf/d to fall back below the previous five year average of around 97bcf/d.
• US domestic gas production was yesterday up to the highest since Jan 7 at 105.3bcf/d according to Bloomberg compared to an average of 104.6bcf/d so far in Feb.
• Export flow to Mexico is today at 6.27bcf/d today.