Natural Gas End of Day Summary: Henry Hub Finds Late Support

Henry Hub front month has regained ground to be stronger on the day, with support from wildfires threatening Canadian output. During the day, the market has been weighing lower production levels and a depressed US rig count against slightly weaker LNG export flows and milder weather in the Midwest.

• US Natgas JUL 24 up 0.9% at 2.6$/mmbtu
• US Natgas DEC 24 up 1.3% at 3.57$/mmbtu
• Wildfires near Edmonton in Alberta, Canada are within 5km of an area responsible for 1,234 boed of natural gas production.
• Baker Hughes data showed that the US gas rig count was up 1 on the week to 100, but down 37 rigs, or 27% on the year.
• The NOAA 6–14-day forecast shows continued above normal temperatures across the western US, although a further expanded region of below normal temperatures across the Midwest and east coast.
• Lower 48 natural gas production is down today at 99.376 bcf/d, compared to 99.744 bcf/d the previous day.
• Natural gas deliveries to US LNG terminals are at 13.619bcf/d today May 31, down from 13.745bcf/d yesterday.
• Domestic natural gas demand is at 66.65 bcf/d/d according to Bloomberg, slightly up on the day.
• Tighter fundamentals and geopolitical uncertainties have strengthened gas prices across all key markets in May: IEA analyst Greg Molnar.
• Gorgon LNG in Australia has returned to full production supporting global supply.
• Course change for the LNG Endeavour: it was heading to Montoir, France for 1 June but is now heading south and signalling "for orders,” according to ICIS.
• Heat waves across Asia are driving demand for LNG cargoes to support cooling requirements.
• Israel exported a record 1.28 bcf/d of gas to Egypt and Jordan in Q1 2024, according to MEES.