Natural Gas End of Day Summary: Henry Hub Finds Support

Henry Hub has found support on the day as traders looking to capitalise on discretionary buying while prices remain depressed.

• US Natgas MAY 24 up 0.9% at 1.85$/mmbtu
• Warmer weather is expected to move across the Eastern half of the USA, bringing above average temperatures. Temperatures in the Western USA will be below normal before turning milder.
• Feedgas flow to US LNG export terminals are today estimated down at the lowest since January at 11.3bcf/d according to Bloomberg. A drop in supply to Sabine Pass and Corpus Christi is adding to the ongoing works at Freeport.
• US domestic natural gas production yesterday was down at 99.6bcf/d and in line with levels seen this time last year according to Bloomberg compared to an average of 100.4bcf/d over the previous week.
• Lower 48 natural gas demand is today estimated just above normal at 78.6bcf/d today according to Bloomberg. Demand fell to a low of 74.6bcf/d over the weekend.
• The total estimated quantity of LNG on tankers that have not unloaded for at least 20 days rose by 8.5% last week to 3.71mn tons as of 31 March.
• Global weekly LNG imports edged up by 4% to 7.9mn tons during 25-31 March, despite shipments to NW Europe and Italy falling to the lowest since October according to BNEF.
• Global LNG supply will reach 665m mtpa by 2030 with capacity additions in North America and the Middle East creating a buyer’s market, according to Barclays, cited by Bloomberg.
• Russia’s Novatek has suspended production at its Arctic LNG 2 facility due to sanctions and a shortage of gas tankers, sources told Reuters.