Free Trial

Henry Hub Steadies After Two Day Rally

NATGAS

US Henry Hub is just edging off from the highs of the week after the big drop in rig count and increase in domestic demand pressured prices higher. Steady LNG export demand had added to the support while strong current production and healthy storage levels have limited the move.

    • US Natgas JUN 23 down -0.7% at 2.36$/mmbtu
  • Domestic demand is holding just above normal at 63.1bcf/d today with support from above normal consumption for power generation. The latest 6-14 day NOAA forecast is relatively unchanged with above normal temperatures expected in western and northern areas but below normal expected towards the Gulf Coast region.
  • Natural gas production was estimated at 100.4bcf/d yesterday according to Bloomberg. The latest EIA drilling productivity report has forecast shale gas output to increase to 97.239bcf/d compared to a revised May forecast of 96.983bcf/d
  • Delivery flows to the US LNG export terminals have been steady just over 13bcf/d although have dipped today to 12.69bcf/d according to Bloomberg due to a reduction in supply to Corpus Christi.
  • Export flows to Mexico are today estimated around 6.0bcf/d.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.