Henry Hub Extends Gain Ahead of EIA Inventory Update

US Henry Hub extends gains with support from a reduction in US production, warm weather on the Gulf Coast ahead rising European prices ahead of the updated EIA inventory data.

• The latest EIA weekly gas inventories for the week ending 9 Jun will be released this afternoon at 10:30 ET (15:30 BST). The expectation is for a build of +94bcf in line with the seasonal normal of +96bcf according to Bloomberg. Last week showed a build of +104cf with another +14bcf injected to non-salt inventories and reclassified from working gas to base gas.
• Total US gas demand during the week increased about 3bcf/d from the week prior according to S&P Global. A slight decline in production offset a small uptick in net imports from Canada, leaving less supply available for injection into storage.
• The increased demand was mainly driven by a 4bcf/d increase in gas-fired power demand and partially offset by a 1.5bcf/d decline in LNG feedgas demand due to terminal maintenance. US pipeline exports from the US to Mexico rose by about 150mmcf/d.
• Tighter US supply and demand in the coming weeks could be led by less gas than expected in the South-Central region and pressure on production in Haynesville according to S&P Global.
• US Natgas JUL 23 up 4.1% at 2.44$/mmbtu