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Henry Hub Rises to Highest Since Jan amid Production Concern

NATGAS

Henry Hub front month has risen to the highest since January with a drop in production offsetting further curtailment to LNG export feedgas flows.

    • US Natgas JUN 24 up 2.2% at 2.26$/mmbtu
    • US Natgas NOV 24 up 1.1% at 3.07$/mmbtu
    • US Natgas MAY 25 up 0.7% at 3.08$/mmbtu
  • US Henry Hub spot prices for 2024 have been revised up by 1.3% to $2.18/MMBtu, according to the EIA in its May Short Term Energy Outlook. US dry natural gas production has been revised down for 2024 by 0.6 bcf/d to 103.0 bcf/d, while production in 2025 is expected to be 104.8 bcf/d.
  • US domestic natural gas production fell back to at 98.5bcf/d yesterday according to Bloomberg with a drop in supply from the Appalachia, Permian and Haynesville regions.
  • US LNG export terminal feedgas flows have today fallen to 11.67bcf/d according to Bloomberg with a drop in Corpus Christi flows adding to reduced supply to Freeport and Cameron amid maintenance.
  • Scheduled maintenance on a pipeline supplying Corpus Christi LNG is planned for 12 days from June 10 according to Cheniere.
  • Lower 48 natural gas demand is holding steady just above normal this week at 67.8bcf/d today according to Bloomberg. The lower 48 temperature is expected to drop in the next couple of days before moving back above normal into the middle of the month and beyond. The NOAA 6-14 day forecast shows above normal temperatures across the US throughout.
  • Export flows to Mexico are holding steady today at 6.49bcf/d according to Bloomberg.
  • Nymex Henry Hub daily aggregate traded futures volume was at 434k on May 7.

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