Henry Hub Falls Amid Warm Weather Ahead of Expected Storage Draw

Henry Hub is extending the recent bearish trend amid warm weather in December and despite the expectation of an above normal storage withdrawal in data released later today.

• US Natgas JAN 24 down -2.1% at 2.52$/mmbtu
• US Natgas JUN 24 down -1.7% at 2.55$/mmbtu
• US Natgas DEC 24 down -1.6% at 3.63$/mmbtu
• The EIA weekly gas inventories for the week to Dec 1 will be released this afternoon at 10:30 ET (15:30 GMT). The expectation for the first significant draw of the winter of -109bcf according to a Bloomberg survey compared to the seasonal normal draw of -33bcf and a build of +10bcf seen last week.
• Feedgas flows to US LNG export terminals are at 14.6bcf/d according to Bloomberg compared to an average of 14.4bcf/d over the first week of December.
• Natural gas demand has edged down just below normal to 89.5bcf/d today according to Bloomberg. US lower 48 temperatures are forecast generally above normal in the coming two weeks with above normal in central and northern areas but cooler in the south.
• Domestic natural gas production is today estimated at 104.4bcf/d according to Bloomberg and roughly In line with flows this week. Haynesville and Permian supplies have dipped from the high levels seen at the start of this month.
• Export flows to Mexico are today at 6.24bcf/d according to Bloomberg.