NATGAS: Henry Hub Climbs on Colder Weather

Henry Hub front month has extended gains in US hours after updated weather forecasts indicate colder weather for the central and eastern continental US.

• US Natgas DEC 24 up 3.5% at 2.76$/mmbtu
• US Natgas MAY 25 up 2% at 2.75$/mmbtu
• Forecasts shifted a “decent bit colder” for much of the central and eastern parts of the US for Nov. 14-17, said Steven Silver, senior meteorologist at Maxar, cited by Bloomberg.
• Milder weather had been putting pressure on US natural gas in recent days.
• Tropical Storm Rafael is expected to intensify into a category 2 hurricane on a path through the US Gulf of Mexico. Shell and Chevron are evacuating non-essential personnel from its oil and gas assets ahead of its arrival and the Port of Freeport in South Texas closed to inbound vessel traffic.
• US domestic natural gas production was down to 99.4bcf/d yesterday, according to Bloomberg, compared to an average of 101.6bcf/d over the previous week.
• Lower 48 natural gas demand is following the seasonal trend higher, estimated up to 77.3bcf/d today, according to Bloomberg.
• US LNG export terminal feedgas supply is estimated at 13.17bcf/d today, BNEF shows, after a recovery in Freeport LNG flows but with Sabine Pass volumes below normal.