Henry Hub Volatile During the Day

US Henry Hub has been volatile during US hours, after peaking at around $2.95/MMBtu before reversing almost all its gains and plummeting to $2.902/MMBtu. Front month has since regained ground, although remains below the daily peak.

The market continues to weigh the upside of higher demand, stable LNG export feedgas and cooler weather forecasts against high production and robust storage levels.

• US Natgas NOV 23 up 0.9% at 2.93$/mmbtu
• US Natgas APR 24 down -0.4% at 3.03$/mmbtu
• US domestic natural gas production is today estimated at 103.6bcf/d after a new high of 104.04bcf/d yesterday according to Bloomberg and compared to around 100bcf/d this time last year. The Baker Hughes rig count on Friday showed US gas rigs holding steady this month at 118.
• Natural gas deliveries to US LNG export facilities are today back at 14.06bcf/d according to Bloomberg after seeing a brief decline to 13.2bcf/d due to a 0.7bcf/d drop in Freeport LNG terminal supplies on 21 Oct.
• Lower 48 dry gas demand has risen since mid last week and is today just above the five year average for the time of year at 72.8bcf/d today according to Bloomberg. The latest NOAA forecast shows warm weather remaining on the East Coast and Gulf Coast but below normal temperatures across much of the rest of the country, especially in the north. The cooler weather is expected to spread and bring the East Coast back near to or even briefly below normal in the 8-14 day period.
• Export flows to Mexico are today estimated at 6.3bcf/d.