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Henry Hub Stable With Support from Decreasing Storage Surplus

NATGAS

US Henry Hub holds relatively steady after the trend lower since 10 Aug with support from the below expected US storage build yesterday.

    • US Natgas SEP 23 up 0.2% at 2.52$/mmbtu
    • US Natgas FEB 24 down -0.4% at 3.72$/mmbtu
    • US Natgas AUG 24 down -0.7% at 3.34$/mmbtu
  • The EIA weekly data yesterday showed a below expected build in US natural gas storage inventories for the week ending 18 Aug. Stocks built by just +18bcf compared to the 5-year average for this time of year of +51bcf. The surplus in total US inventories has narrowed slightly in recent weeks but stocks are still above the five year average at 3,083bcf compared to the average of 2,802bcf.
  • Feedgas flows to LNG export terminals have today recovered to 12.2bcf/d led by an increase in Corpus Christi LNG supply of about 0.5bcf/d from yesterday.
  • Lower 48 dry gas consumption is today estimated down at 75.4bcf/d from an average around 77.5bcf/d in recent days according to Bloomberg but warm weather across the US continues to provide support. The latest two week NOAA forecast shows below normal temperatures on the Atlantic coast in the 6-10 day period moving to near or above normal in the second week of the outlook.
  • US domestic natural gas production is estimated at 100.8bcf/d today compared to an average of 101.4bcf/d so far in August according to Bloomberg.
  • Export flows to Mexico are still well above normal at 6.8bcf/d today.

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