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Henry Hub Weakening


Henry Hub front month is now trading lower, despite a slightly smaller than expected build in US natural gas storage inventories and rising feedgas flows to LNG terminals.

  • US Natgas NOV 23 down -1.2% at 3.34$/mmbtu
  • US Natgas APR 24 down -0.1% at 3.28$/mmbtu
  • US Natgas OCT 24 up 0.3% at 3.59$/mmbtu
  • US Natgas 1-2 spread down 0$/mmbtu at -0.29$/mmbtu.
  • The latest EIA weekly gas inventories for the week ending 6 Oct showed a build of +84bcf compared to a Bloomberg survey expecting a +86bcf build and the five-year average for this time of year of +101bcf.
  • The total US inventories surplus has closed slightly again this week, but stocks are still above normal at 3,529bcf compared to the average of 3,344bcf.
  • Feedgas flows to US LNG export facilities are today estimated at the highest since April at 13.93bcf/d according to Bloomberg boosted by the return of Cove Point LNG flows suggesting the end of maintenance.
  • Domestic natural gas demand is down near seasonal normal levels at 66.3bcf/d today according to Bloomberg. The latest NOAA forecast continues to show a mixed picture with below normal temperatures in eastern and Gulf Coast regions but above normal in the West Coast and Rocky Mountain regions in the 6-10 day and spreading further east later in the two-week forecast.
  • US domestic natural gas production was yesterday estimated at 101.7bcf/d according to Bloomberg and just above average levels of 101.5bcf/d seen so far this month.
  • Export flows to Mexico are today estimated still above the five-year average at 7.1bcf/d.

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