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High US Demand Drives Natgas Rally

NATGAS

US Natgas prices continue to rally as hot temperatures support domestic demand and uncertain Russian supply to Europe result in strong TTF prices.

  • US Natgas AUG 22 up 1% at 8.39$/mmbtu
  • TTF AUG 22 up 5.1% at 168€/MWh
  • Above normal US demand has driven front month up from a low of 5.38$/mmbtu on 5th July up to over 8.5$/mmbtu earlier today. Above normal temperatures are expected for Texas and the North East over the coming week before widespread heat is expected across the US in the first week of August. Lower 48 dry gas demand is today estimated at 76bcf/d compared to a seasonal normal of approximately 68bcf/d.
  • Dry gas production is still higher than the 5-year range up at 96.7bcf/d.
  • Deliveries to LNG export terminals of 10.6bcf/d today are lower than over the weekend and remain reduced compared to normal due to the ongoing outage at Freeport LNG.
  • The graph below shows the weekly average lower 48 dry gas demand compared to the 5-year range:
Source: Bloomberg
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US Natgas prices continue to rally as hot temperatures support domestic demand and uncertain Russian supply to Europe result in strong TTF prices.

  • US Natgas AUG 22 up 1% at 8.39$/mmbtu
  • TTF AUG 22 up 5.1% at 168€/MWh
  • Above normal US demand has driven front month up from a low of 5.38$/mmbtu on 5th July up to over 8.5$/mmbtu earlier today. Above normal temperatures are expected for Texas and the North East over the coming week before widespread heat is expected across the US in the first week of August. Lower 48 dry gas demand is today estimated at 76bcf/d compared to a seasonal normal of approximately 68bcf/d.
  • Dry gas production is still higher than the 5-year range up at 96.7bcf/d.
  • Deliveries to LNG export terminals of 10.6bcf/d today are lower than over the weekend and remain reduced compared to normal due to the ongoing outage at Freeport LNG.
  • The graph below shows the weekly average lower 48 dry gas demand compared to the 5-year range: