Henry Hub Holding Gains Driven by EIA Storage Draw

Henry Hub has regained ground since a low of 1.643$/mmbtu following a larger than expected natural gas storage draw last week in EIA data yesterday. Front month however remains down on the week.

• US Natgas APR 24 up 0.5% at 1.75$/mmbtu
• US Natgas SEP 24 up 0.4% at 2.56$/mmbtu
• US Natgas MAR 25 down 0.2% at 3.25$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 8 showed a draw of 9bcf compared to the seasonal normal draw of 99bcf. US inventories remain in surplus towards the end of the winter heating season. Total stocks are at 2,325bcf compared to the previous five year average of 1,688bcf.
• Total feedgas flows to US LNG export terminals are today up slightly to 12.87bcf/d according to Bloomberg. Feedgas to Freeport remains at around a third of capacity while Sabine Pass supply is also about 0.5bcf/d below levels seen earlier this month.
• Lower 48 natural gas demand today remains unchanged and still below normal at 72.3bcf/d. The NOAA weather forecast shows slightly above normal temperatures in the west in the 6-10 day period cooling back to near normal in the 8-14 day period. The east coast shows a slight switch towards warmer weather late in the two week period.
• US domestic natural gas production was yesterday at 100.3bcf/d according to Bloomberg compared to an average of 100.8bcf/d in the previous week, having stabilised following a decline during February.
• Export flows to Mexico are today at 6.36bcf/d according to Bloomberg.