Natural Gas End of Day Summary: Henry Hub Falling

US Henry Hub has continued to trade lower on yesterday’s close, with pressure coming from a build in US inventories. A warmer weather outlook expected to push down domestic demand. Prices have traded during the day between $3.403/MMBtu and $3.509/MMBtu.

• US Natgas DEC 23 down -0.9% at 3.46$/mmbtu
• US Natgas MAY 24 up 0.5% at 3.26$/mmbtu
• The latest EIA weekly gas inventories for the week ending 27 Oct showed a build of +79bcf compared to a Bloomberg survey expecting a +79bcf build and the five-year average for this time of year of +72bcf.
• The total US inventories remain above normal at 3,779bcf compared to the average of 3,568bcf.
• EIA will delay all scheduled data releases between November 8-10 including the Weekly Natural Gas Storage Report on November 9 to complete a planned systems upgrade.
• US natural gas demand is today down slightly to 85.3bcf/d according to Bloomberg compared to the seasonal normal of around 75bcf/d. The latest NOAA forecast is showing above normal temperatures across much of the country in the 6-14 day period.
• Natural gas delivery flows to US LNG export facilities are near the record highs seen in April with today estimated at 14.7bcf/d according to Bloomberg with supplies to Sabine Pass, Freeport and Corpus Christi near highs from earlier this year.
• Domestic natural gas production remains strong at 103.0bcf/d yesterday compared to output of around 100bcf/d this time last year.
• Israel has resumed gas flows to Egypt from its 12.4 bcm/y Leviathan gas field, according to Argus citing market sources. The return comes after recent technical issues at the 6.5 bcm/y Karish gas field meant that Leviathan flows to Egypt were redirected to prioritise domestic supply.
• Wires reporting comments from a BDO Israel report claiming that Israel is exporting 70% less natural gas since it shut down its Tamar field, and that the economic toll on Israel of said closure amounts to ~USD200mn/month.
• LNG traders are looking to procure Asian shipments to avoid the Panama Canal, as drought ­­conditions led to cuts in slots for ship transits according to Bloomberg.
• Chevron is negotiating possible LNG supply contracts for Europe for the duration of 15 years as European buyers are expecting the region to rely for longer than previously thought on gas, Colin Parfitt, head of Chevron's trading, shipping and pipeline operations, said, cited by Reuters.
• Cheniere Energy is aiming to start the Corpus Christi Stage 3 expansion in late 2024 months earlier than initially projected according to the company’s third-quarter earnings call.
• The US has imposed a new set of sanctions measures against Russia Nov. 2, aimed at Russia’s future energy capabilities. The latest measures will target a major entity involved in the development of the Arctic-2 LNG project, limiting its access to the necessary western technology.