Henry Hub Falls and Set for Net Decline on the Week

US Henry Hub is trading lower today to reverse the gains seen yesterday following the updated EIA storage data. Front month is testing the lows of the week of 2.57$/mmbtu seen on 16 August and heading for a net decline on the week.

• US Natgas SEP 23 down -2.2% at 2.56$/mmbtu
• US Natgas FEB 24 down -1.1% at 3.84$/mmbtu
• US Natgas AUG 24 down -0.7% at 3.41$/mmbtu
• The latest EIA weekly gas inventories for the week ending 11 Aug showed a build of +35bcf in line with expectations and compared to the 5-year average for this time of year of +41bcf. The surplus in total US inventories has narrowed slightly in recent weeks but stocks are still above the five year average at 3,065bcf compared to the average of 2,750bcf.
• Gas flows to LNG export terminals are stable today at 12.6bcf/d according to Bloomberg.
• Domestic gas consumption has dropped again to 73.5bcf/d today according to Bloomberg although is still above normal for the time of year with warm weather supporting cooling demand. The NOAA forecast is relatively unchanged from yesterday with mostly above normal temperatures across the country in the next two weeks.
• US domestic natural gas production is back up to 101.8bcf/d today according to Bloomberg after a dip earlier in the week. Current production compares to around 98bcf/d day seen this time last year.
• Export flows to Mexico are still well above normal at 7.1bcf/d today.