Henry Hub Weighs Production Drop and Muted Demand Ahead of EIA Data

Henry Hub holds steady as the market weighs the drop in US production against warm weather, muted demand and high stocks ahead of the updated EIA weekly storage data.

• US Natgas APR 24 up 0.6% at 1.94$/mmbtu
• US Natgas SEP 24 down -0.2% at 2.58$/mmbtu
• US Natgas MAR 25 down -0.3% at 3.28$/mmbtu
• The EIA weekly gas inventories for the week ending Mar. 1 will be released this afternoon at 15:30GMT. The expectation is for a draw of -37bcf according to a Bloomberg survey after a draw of -96bcf last week. The seasonal normal is a draw of around -139bcf.
• US domestic natural gas production is at 99.6bcf/d today and in line with output seen this time last year according to Bloomberg after seeing a steady decline from around 105bcf/d in early February.
• Lower 48 natural gas demand is at 79.0bcf/d today to remain just below the previous seasonal five year average. The US weather forecast continues to show above normal temperatures across much of the US with warmer weather expected in central, southern and eastern areas.
• Feedgas flows to US LNG export terminals are still curtailed today at about 13.7bcf/d according to Bloomberg despite a slight recovery in Freeport LNG flows. Freeport supply had seen a further dip this week in addition to the ongoing train 3 outage.
• Export flows to Mexico are today at 6.3bcf/d according to Bloomberg.