Henry Hub Unchanged on Week After Pulling Back from High

US Henry Hub front month is near unchanged on the week after pulling back from a high of $3.159/mmbtu on June 11. Low production relative to last year remains supportive although prices have eased since the approval of the Mountain Valley pipeline this week and after an as expected gas storage build maintained a strong surplus.

• The EIA weekly gas inventories for the week ending June 7 showed an injection in line with expectations at 74bcf compared to the seasonal normal injection of 89bcf. US storage inventories continue to hold a strong surplus with total stocks at 2,974bcf compared to the previous five-year average of 2,401bcf
• US domestic natural gas production was yesterday back up to 100.4bcf/d according to Bloomberg driven by a recovery in Permian flows and compared to an average of 99.8bcf/d so far in June.
• Domestic natural gas demand is today estimated up to 71.7bcf/d according to Bloomberg. The weather outlook is still forecasting lower 48 temperatures to rise over the coming week with the NOAA showing above normal temperatures expected across most of the US throughout the 6-14 day period.
• US LNG export terminal feedgas flows are today down at 12.50bcf/d, according to Bloomberg, with a further drop in supplies to Sabine Pass LNG to just 3.69bcf/d. Feedgas has averaged 13.0bcf/d so far in June.
• Export flows to Mexico remain strong at 6.97bcf/d today according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was at 597k on June 13.
  • US Natgas JUL 24 down 0.1% at 2.96$/mmbtu
  • US Natgas DEC 24 down 0.3% at 3.82$/mmbtu
  • US Natgas JUN 25 down 0.2% at 3.39$/mmbtu