Henry Hub Extends Decline on Demand Concern and Comfortable Supply

US Henry Hub extends the weekly decline following a wider market sell off with recessionary concerns ahead of the possible rate hike by the US Fed. Prices remain pressured with an easing of the cold weather forecast on the west coast and with high production levels, above average storage and slightly lower LNG export flows.

• US Natgas JUN 23 down -1.7% at 2.18$/mmbtu
• The US weather forecast shows cold in the west coast region easing back up to near normal towards in the second week of the two week outlook. Above normal temperatures in central and eastern areas are also expected to ease back towards normal. Domestic demand is still above normal at 70.2bcf/d compared to the seasonal normal of around 63bcf/d.
• Deliveries to US LNG export terminals are estimated lower at 12.41bcf/d according to Bloomberg due a reduction in supply to Sabine Pass LNG. Feedgas flows reached a peak of 14.9bcf/d in mid April and saw an average of 14.02bcf/d in April.
• Natural gas production dipped slightly yesterday to 100.9bcf/d but remains strong compared to last year output levels.
• Exports to Mexico are today estimated at 5.7bcf/d.