Henry Hub Rises Despite Lower Storage Draw

Henry Hub is trading higher on the day and has strengthened further despite below expected EIA storage data, as colder weather across the US and record LNG feedgas offset stronger inventories.

• US Natgas FEB 24 up 5.8% at 2.82$/mmbtu
• US Natgas JUL 24 up 2.6% at 2.82$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 29 showed a draw of -14bcf compared to the expectation for a draw of -32bcf according to a Bloomberg survey and the seasonal normal draw of -110bcf.
• The total US inventories remain well above season normal levels at 3,476bcf compared to the average of 3,095bcf.
• Domestic natural gas demand is holding above normal and up on the day to 102.35bcf/d according to Bloomberg.
• The latest weather forecast shows below normal temperatures spreading across from the west in the coming week but with above normal holding on the East Coast. Gusty winds are expected in the eastern half of the country and snow in the Midwest for Jan 8-12.
• Feedgas supplies to US LNG export terminals are back up to 15.0bcf/d today after a dip in Sabine Pass supply taking the total down to 14.15bcf/d yesterday according to Bloomberg.