Henry Hub Surges Ahead of Expected Large Storage Draw

Henry Hub surges higher to recover the losses seen last week ahead of a large draw expected in the updated EIA weekly storage data later today. Front month has recovered from a low of 2.311$/mmbtu on Jan 21 to the highest since Jan 18.

• US Natgas FEB 24 up 7% at 2.83$/mmbtu
• US Natgas JUL 24 up 0.6% at 2.69$/mmbtu
• US Natgas JAN 25 up 0.6% at 3.98$/mmbtu
• The latest EIA weekly gas inventories for the week ending 19 Jan will be released this afternoon at 15:30GMT. The expectation is for a large draw of -319bcf according to a Bloomberg survey after the cold US weather last week. Data last week showed a draw of -154bcf and the seasonal normal is -149bcf.
• US domestic dry gas production continues to edge higher to 102.8bcf/d yesterday after the disruption due to cold weather last week but is still not back to the record levels seen in late Q4 and early Jan.
• Feedgas supplies to US LNG export terminals fell back down to 13.1bcf/d yesterday after seeing a recovery up to 14.1bcf/d on Jan 23. The low flows are driven by a drop in supplies to Freeport and Calcasieu Pass.
• Lower 48 natural gas demand is again lower today to 89.3bcf/d according to Bloomberg and the lowest since Dec 27. The US weather forecast shows above normal temperatures dominating across the US until the start of Feb although temperatures on the East coast are dropping back below normal during the second week of the outlook.
• Export flows to Mexico is today slightly higher at 6.32bcf/d.