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Henry Hub Trends Higher

NATURAL GAS

US Henry Hub is trading higher during US hours, as cooler weather forecasts in the mainland USA and a slight fall in production are countering lower demand and weaker LNG feedgas flows.

  • US Natgas NOV 23 up 0.7% at 2.99$/mmbtu
  • US Natgas APR 24 up 0.5% at 3.06$/mmbtu
  • Domestic natural gas production yesterday decreased to 101.67bcf/d, down from almost record highs of 104.05bcf/d the previous day. Production, however, remains above the seasonal average of 94.02bcf/d.
  • US natural gas demand is estimated lower today and has fallen below the five-year range to 66.17bcf/d, down from 67.63bcf/d yesterday. The latest weather forecast has been slightly revised up but most of the US is forecast to have below-norm temperatures during the 6-10 day period.
  • Feedgas deliveries to US LNG export facilities edged down slightly on the day to 13.65bcf/d compared with 13.70bcf/d yesterday according to Bloomberg. Flows remained above the 30-day moving average of 13.31bcf/d. Deliveries to Sabine Pass have dipped modestly to 4.47bcf/d from 4.53bcf/d yesterday.
  • Freight congestion in the USGC and Panama Canal could impact the volume of LNG entering the market, despite a recent ramp up of US production, according to Platts.
  • Export flows to Mexico are today estimated at 6.64bcf/d.

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