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NATGAS: Henry Hub Holds Gains Ahead of Colder Weather

NATGAS

Henry Hub is holding steady after the rally earlier in November supported by strong domestic and export demand and cooling temperatures this week.

  • Lower 48 natural gas demand is up again to 89.3bcf/d today, according to Bloomberg. Demand is expected to be boosted later this week with colder weather and winter storms. Lower 48 is expected to see a drop in average temperatures into the end of the month and into early December before a slight recovery during the second week of the outlook.  The NOAA 6-14 day forecast shows below normal in the east but above normal in the west.
  • US LNG export terminal feedgas supply is estimated at 13.90bcf/d today, BNEF shows with a recovery in Freeport flows after a dip in the previous couple of days.
  • US domestic natural gas production remains strong at 103.9bcf/d today after rising to the highest since August the previous day, according to Bloomberg, and compared to an average of 101.7bcf/d so far in November.
  • Export flows to Mexico are estimated at 6.1bcf/d today, according to Bloomberg.
  • Nymex Henry Hub daily aggregate traded futures volume was 856k on Nov. 25.
    • US Natgas DEC 24 up 0.6% at 3.39$/mmbtu
    • US Natgas MAY 25 up 0.8% at 3.07$/mmbtu
    • US Natgas NOV 25 up 0.2% at 3.73$/mmbtu
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Henry Hub is holding steady after the rally earlier in November supported by strong domestic and export demand and cooling temperatures this week.

  • Lower 48 natural gas demand is up again to 89.3bcf/d today, according to Bloomberg. Demand is expected to be boosted later this week with colder weather and winter storms. Lower 48 is expected to see a drop in average temperatures into the end of the month and into early December before a slight recovery during the second week of the outlook.  The NOAA 6-14 day forecast shows below normal in the east but above normal in the west.
  • US LNG export terminal feedgas supply is estimated at 13.90bcf/d today, BNEF shows with a recovery in Freeport flows after a dip in the previous couple of days.
  • US domestic natural gas production remains strong at 103.9bcf/d today after rising to the highest since August the previous day, according to Bloomberg, and compared to an average of 101.7bcf/d so far in November.
  • Export flows to Mexico are estimated at 6.1bcf/d today, according to Bloomberg.
  • Nymex Henry Hub daily aggregate traded futures volume was 856k on Nov. 25.
    • US Natgas DEC 24 up 0.6% at 3.39$/mmbtu
    • US Natgas MAY 25 up 0.8% at 3.07$/mmbtu
    • US Natgas NOV 25 up 0.2% at 3.73$/mmbtu