Henry Hub Steadies Before Storage Data as Warm Weather Eases

US Henry Hub steadies ahead of the updated US natural gas inventory data later today and following the pull back yesterday with the warm weather in the US forecast to cool slightly.

• US Natgas AUG 23 up 0.2% at 2.67$/mmbtu
• The latest EIA weekly gas inventories for the week ending 23 Jun will be released this afternoon at 15:30BST. The expectation is for a build of +82bcf compared to a build of +95bcf last week and the seasonal normal of +84bcf.
• The US weather forecast has cooled slightly this week with above normal temperatures on the Gulf Coast and west coast easing back from the expectation of strongly above normal. Temperatures in the eastern half of the country are still expected to hold just above normal throughout the two week outlook. Domestic demand is following the seasonal trend higher up to 71.1bcf/d today according to Bloomberg.
• Lower 48 dry gas production continues to recover to back over 100bcf/d after dipping lower on 13 June. Domestic output is today estimated at 101.0bcf/d according to Bloomberg.
• Delivery flows to the US LNG export terminals are unchanged from yesterday at 12.7bcf/d with a recovery in Sabine Pass LNG flows although still below the pre maintenance levels.
• Export flows to Mexico are still above the previous five year range at 7.2bcf/d today.