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Henry Hub Holds Steady Amid Warm Weather and Stable Supplies

NATGAS

US front month Henry Hub is trading near previous close levels having fallen back from a peak of nearly 2.79$/mmbtu late last week. Steady production and healthy natural gas storage levels are set against warm weather driven demand and recovering LNG export flows.

    • US Natgas AUG 23 up 0.2% at 2.72$/mmbtu
  • US production remains relatively stable over the last week with today estimated at 100.5bcf/d according to Bloomberg compared to around 98bcf/d this time last year.
  • Delivery flows to the US LNG export terminals have recovered from a dip in mid July back up to 13.08bcf/d today according to Bloomberg.
  • Lower 48 dry gas consumption continues to hold above the five year average at 75.0bcf/d today according to Bloomberg. Cooling demand is supported with warm weather expected in with most regions except the fat north east in the coming two weeks.
  • Export flows to Mexico are unchanged up at 6.8bcf/d today.

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