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.