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Henry Hub Edges Lower Within Recent Trading Range

NATGAS

US Henry Hub easing back as front month holds within the 2.4$/mmbtu to 2.69$/mmbtu range since 7 March with gradually increase LNG exports, moderate demand, steady production, and healthy storage levels. Prices have steadied following the rally in late February and early March from the low of below 2$/mmbtu on 22 Feb due to the partial return of Freeport LNG.

    • US Natgas APR 23 down -1.5% at 2.53$/mmbtu
  • The latest NOAA weather forecast shows below normal temperatures in western areas in the 6-14 day period but closer to normal in central and eastern areas. Lower 48 dry gas consumption is today estimated above normal at 87.3bcf/d.
  • Pipeline deliveries to the US LNG export terminals are today estimated up to 13.6bcf/d according to Bloomberg with Freeport flows up to 1.13bcf/d. Pipeline feed supplies to Freeport remain well below the full operational capacity of around 2.1bcf/d with the return to full service expected to take several weeks.
  • US production has dipped slightly this week with today estimated at 98.5bcf/d according to Bloomberg.
  • Exports to Mexico are back up to 5.3bcf/d following a dip down to around 4.7bcf/d last weekend.

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