Henry Hub Falls Despite Storage Draw

Henry Hub has fallen to its lowest level this week, despite a larger than normal US stock draw, as a high surplus coming out of winter puts pressure on the front month.

• US Natgas MAY 24 down 3.4% at 1.78$/mmbtu
• US Natgas OCT 24 down 2.3% at 2.52$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 29 showed a draw of 37bcf compared to the expectation for a draw of 43bcf according to a Bloomberg survey and the seasonal normal draw of 14.5bcf.
• Despite the above normal draw, US storage inventories continue to hold a strong surplus with total stocks at 2,259bcf compared to the previous five year average of 1,618bcf.
• US domestic natural gas production recovered to 100.1bcf/d yesterday from 99.5bcf/d the previous day.
• Feedgas flow to US LNG export terminals are today estimated at 12.99bcf/d compared to an average over the previous month of 12.96bcf/d.
• Lower 48 natural gas demand has risen today to 84.2bcf/d according to Bloomberg to remain above normal.