Henry Hub Resume Decline Ahead of EIA Storage Data

US Henry Hub front month resumes the recent decline with strong domestic production and a dip in LNG export flows after the highs from the start of the week and with warm weather forecast in eastern areas.

• US Natgas NOV 23 down -1.5% at 3.01$/mmbtu
• US Natgas APR 24 down -0.9% at 3.11$/mmbtu
• US Natgas OCT 24 down -0.5% at 3.46$/mmbtu
• The latest EIA weekly gas inventories for the week ending 13 Oct will be released this afternoon at 15:30BST. The expectation is for a build of +83bcf according to a Bloomberg survey compared to a build of +84bcf last week and the seasonal normal of +85bcf.
• US domestic natural gas production was yesterday down at 103.0bcf/d from the start of week high according to Bloomberg but still above levels around 99.5bcf/d from this time last year.
• Natural gas deliveries to US LNG export facilities have dipped slightly to 14.1bcf/d today according to Bloomberg with decline it supplies to Sabine Pass although still high compared to flows below 13bcf/d earlier this month.
• Lower 48 dry gas demand is relatively unchanged on the day at 67.6bcf/d today according to Bloomberg with a mixed weather forecast for the coming two weeks. Central and Eastern areas are expected above normal in the 6-10 days period before cooling into week two. Western areas are expected to remain near of slightly below normal with cooler weather in the Rocky Mountain region.
• Export flows to Mexico are slightly down on the day to 6.13bcf/d today.