Henry Hub Holding Losses

Henry Hub is continuing to trade lower in US hours, with further pressure from a US stock draw coming in below the seasonal five-year average. Lower natural gas demand, reduced LNG export flows, and rising production are adding further downside.

• The EIA weekly gas inventories for the week ending Feb 2 showed a draw of -75bcf compared to the expectation for a draw of -75bcf according to a Bloomberg survey and the seasonal normal draw of -201bcf.
• The small draw driven by the switch to warmer weather at the end of January has helped rebuild the US inventories surplus which had been falling in the previous weeks. Total stocks are at 2,584bcf compared to the previous five year average of 2,345cf.
• Lower 48 natural gas demand is down on the day to 86.9bcf/d to fall back below the previous five-year average of around 97bcf/d.
• US domestic gas production was yesterday up to the highest since Jan 7 at 105.3bcf/d according to Bloomberg.
• US LNG feedgas flows were down slightly at the day at 12.988 bcf/d.