Natural Gas End of Day Summary: Henry Hub Climbs

Henry Hub is heading for its highest close since July 23. A dip in production since Aug 5 and another below-average storage build last week have added to upside pressure.

• US Natgas SEP 24 up 1.4% at 2.17$/mmbtu
• US Natgas FEB 25 up 0.4% at 3.46$/mmbtu
• US domestic natural gas production was relatively unchanged from late last week at 101.5bcf/d yesterday according to Bloomberg but holding below an average of 103.9bcf/d in the first five days of the month.
• US LNG export terminal feedgas flows are akin last week at 12.70bcf/d according to Bloomberg
• Domestic lower 48 natural gas demand is back near to seasonal normal levels at 75.0bcf/d today, Bloomberg said.
• The NOAA 6-14 day forecast still shows above normal temperatures in central and Gulf Coast areas.
• US cooling demand for the week ending Aug. 17 is forecast to be 7 cooling degree days (CDD) above the long-term normal, according to Bloomberg, citing the NOAA.
• Global LNG demand is expected to increase 14% in the next decade driven by new countries entering the market for the first time, according to Adnoc Gas’s CFO Peter Van Driel cited by Bloomberg.
• LNG arbitrage to Asia has become increasingly challenging as European prices remain bullish, though muted European demand is keeping US volumes headed eastward, Platts said.
• US LNG cargoes to Asia via the Cape of Good Hope hit a record in July, despite easing restrictions at the Panama Canal, Platts said.
• European Traders this summer are only using a fraction of Ukraine’s natural gas storage, following Russian attacks that drove up risks, according to the FT.