Henry Hub Ticks Slightly Higher

Henry Hub is edging higher today, extending yesterday’s gain, driven by lower natural gas production and an increase in feedgas flows to US LNG terminals, partly offset by declining demand. The front month is on track for a weekly net decline.

• US Natgas JAN 24 up 0.3% at 2.4$/mmbtu
• US Natgas JUN 24 down -0.5% at 2.51$/mmbtu
• US Natgas DEC 24 down -0.2% at 3.49$/mmbtu
• Domestic natural gas production dipped to 104.78bcf/d, compared with the 30-day moving average of 105.61bcf/d amid lower slight dips in production in most basins.
• Lower 48 natural gas demand declined to 94.15bcf/d, down from 98.9bcf/d a day earlier.
• The NOAA weather forecast has been slightly adjusted with some near-normal temperatures on the East Coast, while the rest of the US is seeing temperatures above the average for the remainder of the month.
• Feedgas flows to US LNG export terminals rose to 15.09bcf/d, up from 14.10bcf/d yesterday and above the 30-day moving average of 14.41bcf/d, driven by higher flows to the Corpus Christi and Freeport terminals.
• Export flows to Mexico today were down to 5.3bcf/d, the lowest since early May according to Bloomberg.
• The EIA weekly gas inventories for the week ending Dec 8 showed a draw of -55bcf compared to the expectation for a draw of -56bcf. The total US inventories remain well above season normal levels at 3,664bcf compared to the average of 3,404bcf.