Henry Hub Spikes Following Inventory Draw

Henry Hub markets climbed to new intraday highs, holding most gains, after EIA inventory showed an expected fall in stocks. Colder temperature forecasts are also supporting prices on the day.

• US Natgas JAN 24 up 3.4% at 2.53$/mmbtu
• US Natgas JUN 24 up 2.4% at 2.49$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 15 showed a draw of -87bcf compared to the expectation for a draw of -82bcf but below the five-year average of -107bcf according to a Bloomberg survey.
• While above normal temperatures still dominate the two-week forecast, while the ECMWF forecast has revised down its forecast for the next few days slightly, while the 6-10 day 8-14 days forecasts by the NOAA show growing areas of colder weather in the Southeast USA.
• Natural gas demand is down slightly on the day to 93.4bcf/d to remain just below the seasonal average of 95.8 bcf/d according to Bloomberg.
• Feedgas supplies to US LNG export terminals today have weakened from their near record levels yesterday amid a drop in flows into Calcasieu Pass. Today’s flows are 14.612 bcf/d.
• US natural gas production was yesterday steady at 105.2/d according to Bloomberg and in line with the previous week and well above levels around 100bcf/d this time last year.
• Export flows to Mexico are today down slightly at 5.65bcf/d according to Bloomberg.