Natural Gas End of Day Summary: Henry Hub Down on Week

US Henry Hub has continued weakening since yesterday, following the larger than expected build in inventories. It has tapered its losses slightly near the close but is set to be down around 2.8% since the start of the week. The fall comes despite an expected drop in temperatures in the US next week.

• US Natgas DEC 23 down -3.8% at 2.95$/mmbtu
• US Natgas MAY 24 down -3% at 2.88$/mmbtu
• The US gas rig count was down 4 to 114, according to Baker Hughes
• Domestic natural gas demand is today still below the five-year average at 75.3bcf/d according to Bloomberg due the current warm weather. Temperatures are expected to drop over the weekend with the NOAA 6-14 day forecast showing below normal for central and eastern areas but maintaining above normal on the West Coast.
• Feedgas flows to US LNG export terminals are today relatively unchanged on the day at 14.66bcf/d according to Bloomberg after reaching a new record high of 14.93bcf/d on 15 Nov.
• Domestic natural gas production was yesterday holding in line with previous days at 104.4bcf/d compared to an average so far this month of 105.2bcf/d.
• Energy Company Mexico Pacific and the government of the Mexican state of Chihuahua have entered into a strategic collaboration agreement to attract key financial investment to support the construction and operation of the Sierra Madre Pipeline.
• Northwest Europe has already received 44 LNG cargoes this month with another 27 expected before the end of the month according to Bloomberg ship tracking data.
• Chinese domestic LNG inventories stood at 413,000 tonnes as of last week, down from 414.400 tons the week prior, a survey by OilChem showed.
• The Asian LNG premium over Europe is increasing amid rising costs due to Panama Canal restrictions for mainly US suppliers.