NATGAS: Henry Hub Falls

Front month Henry Hub has lost ground today erasing some of yesterday’s rally. This is despite the return of Freeport LNG feedgas. Storage remains above the five-year average and production levels continue to be strong.

• US Natgas OCT 24 down 0.8% at 2.12$/mmbtu
• US Natgas MAR 25 down 1.1% at 2.88$/mmbtu
• The EIA weekly gas inventories for the week ending Aug. 23 showed an expected injection of 35bcf. US storage inventories however hold a strong surplus of 361bcf over five-year average.
• US domestic natural gas production remains strong at 102.9bcf/d today, Bloomberg said.
• US LNG export terminal feedgas flows are estimated at 12.88bcf/d today, according to Bloomberg after falling to a low of 11.0bcf/d earlier this week due to an interruption in gas supply to Freeport’s pre-treatment facility.
• Domestic natural gas demand has dropped further to 75.5bcf/d but remains above seasonal normal, Bloomberg said.
• The NOAA 6-10 temperature forecast has shifted further above normal in western area compared to the outlook yesterday although eastern areas have moved slightly further below normal.
• Export flows to Mexico are atthe highest since Aug 9 at 7.4bcf/d, Bloomberg said.