Henry Hub Regaining Ground

Henry Hub front month is regaining ground after erasing some earlier gains. The uptick is likely an adjustment following sharp losses yesterday. Henry Hub remains down around 23% since the start of the week and is under pressure from below-expectation storage withdrawals, strong domestic production, and curtailed LNG exports.

• US Natgas MAR 24 up 1.5% at 2.08$/mmbtu
• US Natgas AUG 24 up 0.7% at 2.58$/mmbtu
• The US inventories surplus has reduced in recent weeks, but total stocks remain above normal at 2,659bcf compared to the previous five year average of 2,546cf.
• Lower 48 natural gas demand remains below normal amid warm weather this week with today estimated near yesterday at 90.0bcf/d.
• The NOAA forecast is relatively unchanged for the coming two weeks with below normal temperatures expected in the west and above normal in the east in the 6-14 day period.
• US domestic gas production remains strong with today estimated at 104.7bcf/d according to Bloomberg compared to an average of 104.5bcf/d in the previous week.
• Feedgas supply to US LNG export terminals are today down further to 13.78bcf/d according to Bloomberg.