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Henry Hub Extends Weekly Decline

NATGAS

US Natgas is extending the bearish trend despite a wider energy market recovery following a sharp selloff this week. Front month Henry Hub had recovered from a low of 2.035$/mmbtu earlier today but still down over 12% on the week from a high of over 2.4$/mmbtu.

    • US Natgas JUN 23 down -1.6% at 2.07$/mmbtu
  • EIA US inventory data yesterday showed a smaller than normal build of +54bcf but roughly in line with expectations. Total US inventories are still near the top of the five year range at 2,063bcf compared to the average of 1,696bcf.
  • Total deliveries to US LNG export terminals are lower this week with today estimated down to 13.13bcf/d according to Bloomberg data compared to an average of 14.02bcf/d in April.
  • Natural gas production was yesterday estimated at 100.6bcf/d and still holding well above levels around 96.5bcf/d seen this time last year.
  • The latest NOAA 6-14 day outlook shows temperatures moving slightly warmer than the previous forecast with above normal expected across most of the country in the 8-14 day period. Domestic demand is today still above normal at 68.4bcf/d
  • Export flows to Mexico are holding steady at 5.7bcf/d.

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