Natural Gas End of Day Summary: Henry Hub Ending Week Higher

US Henry Hub is continuing to trade higher as strong production and easing domestic demand are countered by strong LNG export demand following an expected storage build yesterday. Gains have been tapered from the intraday high of $3.571/MMBtu. Henry Hub is around 11% higher since the start of the week.

• US Natgas DEC 23 up 1.2% at 3.51$/mmbtu
• US Natgas MAY 24 up 1.3% at 3.31$/mmbtu
• Domestic natural gas production yesterday reached a new record of 104.8bcf/d according to Bloomberg compared to an average of 102.7bcf/d see throughout October.
• US natural gas demand is down closer to normal to 78.8bcf/d today according to Bloomberg from a recent peak of 93bcd/d on 1 Nov as warm weather spreads across the country this weekend. The latest NOAA forecast is showing above normal temperatures in southern areas in the 6–10-day period with near normal in the north while above normal is seen across the country later in the two week outlook. On the Northeast region is set for below normal temperatures.
• Feedgas delivery flows to US LNG export facilities remain strong with today estimated at 14.56bcf/d according to Bloomberg compared to the recent high of 14.73 on Nov 1.
• Global gas prices are holding their geopolitical risk premiums acquired since Hamas’ attack on Israel Oct. 7, despite robust global supply, Platts said.
• Israel’s natural gas exports to Egypt have resumed but are still reduced, an official in Egypt's petroleum ministry said on Thursday. Argus Media reported on Tuesday flows had resumed. Egypt’s natural gas imports from Israel are currently at 250mcf/d, compared with 800mcf/d normally, a person with knowledge of the matter told Bloomberg.
• A partial LNG cargo is approaching Egypt’s LNG terminal, possibly signalling that the country is looking to fill gaps in its supply with additional imports, Bloomberg said.
• European gas demand rose in October around 1%, the first year on year increase since Russia’s invasion of Ukraine in February 2022, IEA Gas Analyst Greg Molnar said in a post on LinkedIn.
• The latest US sanctions on Russian LNG could threaten Japan’s drive for energy security with the measures directly targeted at a major entity involved in the development the Russia Arctic LNG 2 project according to Bloomberg.
• The global volume of the LNG market will reach 750-800 bcm by 2030 LNG with consumption up to about 190 bcm according to Tass citing Leonid Mikhelson, CEO of Novatek.
• The second cargo since the Balticconnector outage on 8 October is scheduled to arrive at Finland’s Inkoo LNG terminal Friday night, LSEG vessel-tracking data showed.
• LNG supplies to Europe this winter will not be impacted by the new US sanctions on Russia’s 27bcm/year Arctic LNG 2 project but there could be a mid- to long-term impact according to Montel sources.