Henry Hub Falls Ahead of US Storage Data

US Henry Hub is falling again today ahead of the updated EIA inventory data due later today. Front month yesterday saw a drop to a low of 3.225$/mmbtu before recovering most of the losses by the end of the day.

• US Natgas NOV 23 down -1.6% at 3.32$/mmbtu
• US Natgas APR 24 down -0.9% at 3.25$/mmbtu
• US Natgas OCT 24 down -0.5% at 3.56$/mmbtu
• The latest EIA weekly gas inventories for the week ending 6 Oct will be released this afternoon at 15:30BST. The expectation is for a build of +86bcf according to a Bloomberg survey compared to a build of +86bcf last week and the seasonal normal of +101bcf.
• Feedgas flows to US LNG export facilities are today estimated at the highest since April at 13.93bcf/d according to Bloomberg boosted by the return of Cove Point LNG flows suggesting the end of maintenance.
• Domestic natural gas demand is down near seasonal normal levels at 66.3bcf/d today according to Bloomberg. The latest NOAA forecast continues to show a mixed picture with below normal temperatures in eastern and Gulf Coast regions but above normal in the West Coast and Rocky Mountain regions in the 6-10 day and spreading further east later in the two week forecast.
• US domestic natural gas production was yesterday estimated at 101.7bcf/d according to Bloomberg and just above average levels of 101.5bcf/d seen so far this month.
• Export flows to Mexico are today estimated still above the five year average at 7.1bcf/d.