Henry Hubs Edges Higher After EIA Storage Draw Yesterday

Henry Hub is edging higher again today after a net gain on the week as prices recover from the lows seen earlier in February supported by a larger than expected storage draw in data released yesterday.

• US Natgas APR 24 up 0.5% at 1.87$/mmbtu
• US Natgas SEP 24 down -0.6% at 2.55$/mmbtu
• US Natgas MAR 25 down -0.2% at 3.25$/mmbtu
• The EIA weekly gas inventories for the week ending Feb 23 showed a larger than expected draw of -96bcf compared to the expectation for a draw of -83bcf according to a Bloomberg survey and the seasonal normal draw of -173bcf. Total stocks are at 2,374bcf compared to the previous five year average of 1,876bcf.
• Lower 48 natural gas demand is estimated at 87.3bcf/d today to hold in line with the previous five year average for the time of year. The NOAA forecast remains largely unchanged with above normal temperatures in the central and eastern areas and below normal in the west.

• Feedgas flows to US LNG export terminals have increased slightly during the week up to 14.1bcf/d today according to Bloomberg. Supplies to Freeport as still about 0.6bcf/d below normal due to the ongoing train 3 outage.
• US gas production was yesterday at 102.1bcf/d according to Bloomberg compared to an average for Feb of about 103.5bcf/d.
• Export flow to Mexico is today at 6.5bcf/d according to Bloomberg.