Henry Hub Follows Rally in European Gas Prices

US Henry Hub natgas is trading higher today with support from a jump in Europe prices due to Norwegian pipeline supply outages. Front month reached a high of $2.726/mmbtu with the potential for higher LNG demand adding to ongoing lower production levels and a depressed US rig count.

• US domestic natural gas production was yesterday estimated at 99.9bcf/d according to Bloomberg compared to output of around 101bcf/d in early June 2023. The Baker Hughes US gas rig count was at 100 last week, down 37 rigs or 27% on the year.
• US terminal feedgas flows are today estimated at 13.07bcf/d according to Bloomberg compared to an average of 13.35bcf/d over the previous week. Sabine Pass supply is down at 4.16bcf/d compared to highs of over 5mbcf/d at times this year.
• Domestic natural gas demand is today still holding above normal at 67.8bcf/d according to Bloomberg compared to the previous five year average of around 64bcf/d. The latest 6-14 day NOAA forecast shows above normal temperatures are expected on western areas and on the Gulf Coast but below normal in the Midwest and Central Atlantic.
• Export flows to Mexico are at 6.87bcf/d today according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was at 423k on May 31.
  • US Natgas JUL 24 up 4.1% at 2.69$/mmbtu
  • US Natgas DEC 24 up 1% at 3.6$/mmbtu
  • US Natgas JUN 25 up 0.3% at 3.24$/mmbtu