Henry Hub Recovering Following Fall Yesterday Amid High Storage Surplus

Henry Hub is recovering slightly today after a fall yesterday with US storage still high following a smaller than expected draw inventories last week.

• US Natgas MAY 24 up 0.8% at 1.79$/mmbtu
• US Natgas OCT 24 down 0.2% at 2.51$/mmbtu
• US Natgas APR 25 down 0.1% at 2.96$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 29 showed a smaller than expected draw of 37bcf and compared to a seasonal normal draw of 14.5bcf. US storage inventories however hold a strong surplus with total stocks at 2,259bcf compared to the previous five year average of 1,618bcf.
• US domestic natural gas production was yesterday holding relatively steady at 99.9bcf/d compared to an average of 99.8bcf/d in the first few days of April and 100.8bcf/ in March.

• Feedgas flow to US LNG export terminals are today estimated down slightly on the day to 12.68bcf/d driven by a dip in flows to Sabine Pass.
• Lower 48 natural gas demand remains above normal at 83.6bcf/d today according to Bloomberg. The latest weather forecast is unchanged with lower 48 temperatures rising in the coming days with above normal expected for most of the US in the 6-14 day period.
• Export flows to Mexico are today at 5.9bcf/d according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was up at 441k on Apr. 4.