Henry Hub Set for Weekly Gain on Warm Weather and Low Production

US Henry Hub front month continues to rally and looks set to a weekly gain with a warm weather forecast and low production offsetting the ongoing curtailment to US LNG export feedgas flows and the larger than expected storage injections shown yesterday.

• The EIA weekly gas inventories for the week ending May 31 showed a larger than expected injection of 98bcf compared to a Bloomberg survey of 92bcf and the seasonal normal injection of 105bcf. US storage inventories continue to hold a strong surplus with total stocks at 2,893bcf compared to the previous five year average of 2,312bcf.
• Domestic natural gas demand has edged slightly lower but remain above the previous five year average at 67.1bcf/d today according to Bloomberg. The latest NOAA forecast has again shifted slightly warmer with above normal temperatures now expected across much of the country throughout the 6-14 day period as a potential boost to cooling demand.
• US domestic natural gas production was yesterday down slightly to 98.8bcf/d according to Bloomberg with a small dip in Permian flows. Overall output is low compared to an average of 100.8bcf/d in the first week of June 2023.
• US terminal feedgas flows are today at 13.11bcf/d according to Bloomberg with supplies to Sabine Pass but flows to other terminals back up near normal. Total US Feedgas supplies have averaged 13.2bcf/d so far this month.
• Export flows to Mexico are holding above the five year range high at 7.03bcf/d today according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was at 524k on June 6.
  • US Natgas JUL 24 up 2% at 2.88$/mmbtu
  • US Natgas DEC 24 up 1.3% at 3.72$/mmbtu
  • US Natgas JUN 25 up 1.2% at 3.36$/mmbtu