Natural Gas End of Day Summary: Henry Hub Climbs

Henry Hub is heading for US close higher on the day, despite below expected EIA storage data. Colder weather across the US and record LNG feedgas have been adding support.

• US Natgas FEB 24 up 5.8% at 2.82$/mmbtu
• US Natgas JUL 24 up 2.5% at 2.82$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 29 showed a draw of -14bcf vs Bloomberg survey of -32bcf. The seasonal normal draw is -110bcf.
• The total US inventories remain well above season normal levels at 3,476bcf compared to the average of 3,095bcf.
• Domestic natural gas demand is holding above normal and up on the day to 102.35bcf/d according to Bloomberg.
• The latest weather forecast shows below normal temperatures spreading across from the west in the coming week but with above normal holding on the East Coast. Gusty winds are expected in the eastern half of the country and snow in the Midwest for Jan 8-12.
• Feedgas supplies to US LNG export terminals are back up to 15.0bcf/d today after a dip in Sabine Pass supply taking the total down to 14.15bcf/d yesterday according to Bloomberg.
• The longer natural gas prices remain depressed in 2024 and drilling activity reduces, the higher the chance the market could overshoot in both directions, according to EQT’s financial head Jeremy Knop, cited by Reuters.
• LNG futures traded volumes on the financial exchanges in Q4 hit a new record, according to Platts, citing exchange and broker data.
• Germany is investigating possible sabotage at the 55-kilometer LNG pipeline running from Brunsbüttel to Hetlingen in northern Germany.