Henry Hub Maintains Losses

US Henry Hub is maintaining its losses amid a reversal of yesterday’s gains. Domestic demand is expected to ease from the current high levels with short-term forecasts expecting milder weather. Global energy markets continue to watch for the risk of an escalation of the conflict in Israel to the wider Middle East region.

• US Natgas DEC 23 down -2.5% at 3.49$/mmbtu
• US Natgas MAY 24 down -1.1% at 3.23$/mmbtu
• US Natgas NOV 24 down -1.1% at 3.87$/mmbtu
• US Natgas 1-2 spread down 0$/mmbtu at -0.26$/mmbtu
• Henry Hub has risen from its intraday low of $3/429/MMBtu, but has been on a largely downward trajectory during US hours.
• US natural gas demand is today estimated up again to 89.5bcf/d according to Bloomberg with current below normal temperatures in eastern and Gulf Coast regions. Temperatures are expected to warm in the coming days as above normal temperatures move across from the west by the weekend. The NOAA forecast suggests cooler temperatures retuning to eastern regions in the 8–14-day period.
• Domestic natural gas production has drifted slightly lower back to around 102.9bcf/d yesterday but still strong compared to output of around 100bcf/d this time last year.
• Natural gas delivery flows to US LNG export facilities are today estimated slightly higher at 14.6bcf/d according to Bloomberg.
• Export flows to Mexico are today estimated down at 5.51bcf/d compared to an average of 6.46bcf/d in October.