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High Demand Supports US Price Despite Record Production

NATGAS

US Natgas drifts back towards flat on the day after reaching 9.6$/mmbtu earlier today

  • US Natgas SEP 22 up 0.9% at 9.38$/mmbtu
  • External demand for LNG exports remains high with Europe and Asia trying to secure supplies for winter. Deliveries to LNG export terminals have been strong over the weekend at 11.6bcf/d on Saturday and 11.2bcf/d on Sunday.
  • Russian pipeline supplies via Nord Stream are due to halt for 3 days from Aug 3 with concerns flows may not resume afterwards. European gas prices have pulled back today after Economy Minister Habeck said gas storage is filling up faster than planned.
  • Domestic demand looks set to say strong with above normal temperatures expected for most of the country throughout the two week forecast. Lower 48 gas demand is today high at 73.3bcf/d.
  • Dry gas production was just below record levels over the weekend at around 99.5bcf/d after setting a high of 99.65bcf/d on Friday.

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