Henry Hub Ticks Higher on Modest US Production Growth Forecast

US natural gas ticks back up supported by a modest pace of US production growth expected in the near term after seeing the front month price drift lower in the previous couple of days.

• US Natgas JUL 23 up 2.9% at 2.33$/mmbtu
• The latest EIA drilling report showed total US oil output from top shale-producing regions is forecast to rise to the highest on record in July, but the size of the increase is expected to be the smallest since December. Domestic production was yesterday up at 101.2bcf/d compared to around 97.5bcf/d this time last year.
• The US weather forecast remains relatively unchanged from yesterday with above normal temperatures expected in the Gulf Coast and central regions but below normal forecast for the east and west coasts. Domestic demand is has remained steady over the last week and holding above average at 66.8bcf/d today according to Bloomberg.
• Delivery flows to the US LNG export terminals are today down to a new low for the year at 11.2bcf/d with lower supply to Calcasieu Pass LNG adding to maintenance at Sabine Pass LNG.
• Export flows to Mexico are today estimated at 6.5bcf/d.