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Henry Hub Trading Higher

NATURAL GAS

US Henry Hub is trending higher today and is hovering around the $3/MMBtu level. However, it has not recouped all its earlier gains. Henry Hub is finding support from a combination of lower production and continued demand above the seasonal norm.

  • US Natgas NOV 23 up 1.6% at 3$/mmbtu
  • Natural gas deliveries to US LNG export terminals are today slightly up at 12.60bcf/d according to Bloomberg but still curtailed due to the Cove Point maintenance taking around 0.75bcf/d offline. Flows to Freeport LNG rose to 1.95bcf/d today, compared with the 30-day moving average of 1.58bcf/d.
  • Domestic natural gas consumption continued to trend slightly higher since the last few days and stood at 68.9bcf/d today, nearing the seasonal norm. The latest NOAA outlook shows above normal temperatures in the 6-10 day period in the central areas, while near and below normal temperatures narrowed further to the East Coast and parts of the West Coast. Forecasts for cold weather across the country for the coming weekend could boost demand.
  • US domestic natural gas production was yesterday estimated at 100.47bcf/d according to Bloomberg.
  • Export flows to Mexico are estimated higher today at 7.08bcf/d.

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