Henry Hub Recovers Losses

Henry Hub front month has regained ground to be rangebound on the day. The market is weighing lower production levels and a depressed US rig count against slightly weaker LNG export flows and milder weather in the Midwest.

• US Natgas JUL 24 down 0% at 2.57$/mmbtu
• US Natgas DEC 24 up 1.3% at 3.57$/mmbtu
• Baker Hughes data showed that the US gas rig count was up 1 on the week to 100, but down 37 rigs, or 27% on the year.
• Gas rigs fell by five across May, first time the rig count has declined for three consecutive months since July 2020, Reuters noted.
• The NOAA 6–14-day forecast shows continued above normal temperatures across the western US, although a further expanded region of below normal temperatures across the Midwest and east coast.
• Lower 48 natural gas production is down today at 99.376 bcf/d, compared to 99.744 bcf/d the previous day.
• Natural gas deliveries to US LNG terminals are at 13.619bcf/d today May 31, down from 13.745bcf/d yesterday.
• Domestic natural gas demand is at 66.65 bcf/d/d according to Bloomberg, slightly up on the day.
• Export flows to Mexico are down today at around 6.592 bcf/d.