Henry Hub Falls

Henry Hub has dropped during European afternoon hours, hitting lows not seen since Oct. 5, as high production, and pockets of warmer weather counter higher LNG export levels.

• US Natgas NOV 23 down -1.8% at 3.05$/mmbtu
• US Natgas APR 24 down -2.1% at 3.11$/mmbtu
• US Natgas OCT 24 down -2% at 3.46$/mmbtu
• US Natgas 1-2 spread down 0$/mmbtu at -0.37$/mmbtu
• US domestic natural gas production was yesterday estimated up at a record high of 104.17bcf/d according to Bloomberg. US shale gas output is expected to decline by 451mcf/d on the month to 98.81bcf/d in November, according to the EIA Drilling Productivity Report yesterday. October was revised up to 99.26bcf/d.
• Natural gas deliveries to US LNG export facilities are holding up to the highest since April at 14.5bcf/d according to Bloomberg amid strong supplies to Sabine Pass relative to the flows seen in recent months.
• US domestic natural gas demand is still holding above the seasonal five year average at 73.16bcf/d today according to Bloomberg as the warmer than normal two week forecast cools.
• The weather forecast for West Coast regions has turned cooler than expected yesterday in the 6-14 day period, although the East Coast and Central regions remain with above average temperatures.
• Export flows to Mexico are relatively unchanged on the day at 6.1bcf/d.