Henry Hub Regains Ground

Henry Hub has reversed much of its earlier decline and is trending towards rangebound on the day. Upside is limited by warm weather causing weak demand and seasonally low storage withdrawals.

• US Natgas APR 24 down -0.2% at 1.82$/mmbtu
• US Natgas SEP 24 up 0.7% at 2.54$/mmbtu
• The EIA weekly gas inventories for the week ending 1 March showed a draw in line with expectations of -40bcf compared to the seasonal normal draw of -139bcf. Total stocks are at 2,334bcf compared to the previous five year average of 1,783cf.
• US domestic natural gas production is today estimated at 99.8bcf/d compared to an average of 100.7bcf/d so far in March and an average of 103.6bcf/d throughout February.
• Lower 48 natural gas demand is holding in line with the average so far in March at 79.7bcf/d today to remain just below the previous seasonal five year average around 85bcf/d. The US weather forecast continues to show above normal temperatures to drive lower than average late season demand. The NOAA forecast is however showing central, southern and eastern temperatures slightly cooler and closer to normal in the 8–14-day period.
• Feedgas flows to US LNG export terminals are unchanged at 13.7bcf/d according to Bloomberg with the Freeport train outages expected to continue to mid-March.