Henry Hub Holds Most of Yesterday’s Gains

Henry Hub continues to trade slightly lower on the day but has maintained most of its gains from yesterday. The earlier gains followed a larger than expected decline in US natural gas storage and mixed weather expected across the US.

• US Natgas FEB 24 down -0.6% at 2.54$/mmbtu
• US Natgas JUL 24 up 0.1% at 2.68$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 22 showed a draw of -87bcf compared to the seasonal normal draw of -87bcf. The total US inventories remain well above season normal levels at 3,490bcf compared to the average of 3,205bcf.
• Gas supplies to US LNG export terminals are relatively unchanged on the day at 14.38bcf/d today according to Bloomberg with feedgas flows to Corpus Christi still below normal.
• Lower 48 natural gas demand is up again to 91.85bcf/d according to Bloomberg to hold above the seasonal normal.
• The current warm temperatures are expected to cool slightly into January with below normal temperatures in southern areas in the 6–10-day period but above normal holding on in the far north.
• US natural gas production is steady at 105.45bcf/d according to Bloomberg and in line with the average from the previous week to hold just below the record levels of 106.45bcf/d seen earlier in December.
• Export flows to Mexico are today at 5.74bcf/d according to Bloomberg.