Henry Hub Extends Decline Amid Production Recovery and Healthy Storage

Henry Hub is again edging lower to continue the pullback from a high of $3.159/mmbtu on June 11. Gas storage levels holding well above normal are adding to a recovery in production volumes while LNG export terminal feedgas flows remain curtailed.

• The EIA weekly gas inventories for the week ending June 14 showed an injection of 71bcf compared to the seasonal normal injection of 84bcf. US storage inventories continue to hold a strong surplus above the previous five year range, with total stocks at 3,045bcf compared to the previous five year average of 2,484bcf.
• US domestic natural gas production is today at 101.0bcf/d according to Bloomberg down slightly from 101.7bcf/d over the weekend which was the highest since late March.
• US LNG export terminal feedgas flows are today at 12.84bcf/d, according to Bloomberg, with Sabine Pass LNG supplies still below normal at 4.02bcf/d.
• Domestic natural gas demand remains well above normal with today estimated at 76.4bcf/d according to Bloomberg. The NOAA 6-14 day weather forecast still shows above normal temperatures are expected across much of the US although northern areas have cooled relatively to the outlook seen last week and back to near normal during the period.
• Export flows to Mexico are at today estimated at 6.53bcf/d according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was just 370k on June 21.
  • US Natgas JUL 24 down 1.1% at 2.67$/mmbtu
  • US Natgas DEC 24 down 0.9% at 3.69$/mmbtu
  • US Natgas JUN 25 down 1.3% at 3.26$/mmbtu