Henry Hub Ticks Up

Henry Hub is trading higher on the day during European morning trading but has eased back from its intraday high of $1.605/MMBtu. While still hovering around the lowest levels since June-2020, slightly improved LNG feedgas flows and lower production are adding some support compared to Feb. 15.

• US Natgas MAR 24 up 0.4% at 1.59$/mmbtu
• US Natgas AUG 24 up 0.1% at 2.24$/mmbtu
• Domestic natural gas demand is slightly up on the day at 92.7 bcf/d according to Bloomberg and still below the previous five-year average of 93.4 bcf/d.
• The US east coast is forecast to see below normal temperatures in the next three days, before rising above normal until Feb. 24. The 6–14-day period shows above normal temperatures in central areas. Temperatures are near normal in the West and slightly above normal on the east coast.
• US lower 48 gas production is down to 103.7 bcf/d, the lowest level since Jan. 27 according to Bloomberg, but still well above levels seen this time last year of around 99.6 bcf/d.
• Feedgas flows to US LNG export terminals are up slightly today at 13.7 bcf/d. Freeport flows remain subdued amid an LNG train outage.
• The EIA weekly gas inventories for the week ending Feb 9 showed a draw of -49bcf compared to the expectation for a draw of -57bcf. Total stocks are at 2,535bcf compared to the five-year average of 2,187bcf.
• Export flow to Mexico is down slightly today at 5.916 bcf/d today.