Natural Gas End of Day Summary: Henry Hub Highest Since Jan

Henry Hub front month is headed for its highest close since mid-January, supported by rising temperatures, lower production levels year on year, and rising LNG feedgas supplies.

• US Natgas JUN 24 up 5.7% at 2.82$/mmbtu
• US Natgas NOV 24 up 4.6% at 3.34$/mmbtu
• US domestic natural gas production was yesterday estimated unchanged at 99.9bcf/d according to Bloomberg and still below average output of 101bcf/d in May 2023.
• US terminal feedgas flows are today estimated at 12.96bcf/d according to Bloomberg with flows to Sabine Pass and Cameron still below normal levels.
• Domestic natural gas demand is today at 67.3bcf/d according to Bloomberg compared to the seasonal normal of just over 62bcf/d.
• The latest 6–14-day NOAA forecast continues to show above normal temperatures on the Gulf Coast and with western areas also turning warmer relative to the outlook yesterday.
• The rally in US natural gas futures is likely to be short-lived with a possible return to $2.50/MMBtu levels before more clarity appears regarding summer weather, Citi Research said in a note, cited by Dow Jones.
• US natural gas inventories likely posted below average growth in the week to May 17 of 85 Bcf, according to a survey by the WSJ. This would be below the five-year average net increase of 92 bcf.
• Temperatures will soar across Texas this week, further testing the state’s electrical grid as households, Bloomberg said.
• LNG stockpiles held by Japanese utilities increased 6.6% w/w to 2.26m tons in the week to May 19.
• Australia’s Santos is upbeat about long-term global gas demand and is aiming for an 85-15 split between long-term and spot contracts, Managing Director and CEO Kevin Gallagher said.