Natural Gas End of Day Summary: Henry Hub Plummets

Henry Hub Front month has fallen sharply during US hours to approach a three-month low closing level. Updated forecasts for normal to above normal weather across the mainland USA are putting pressure on gas prices.

• US Natgas JAN 24 down -5.2% at 2.57$/mmbtu
• US Natgas JUN 24 down -5.1% at 2.6$/mmbtu
• The US EIA natural gas storage surplus is expected to narrow to about 7% above the five year average in data due tomorrow with an estimated withdrawal of 105bcf according to a survey from S&P Global, while a WSJ survey expects a draw of 110 bcf.
• Feedgas flows to US LNG export terminals are at 14.6bcf/d according to Bloomberg, down around 0.26 bcf/d compared to Dec. 5.
• Natural gas demand is slightly higher again at 93.0bcf/d today according to Bloomberg but near normal and following the seasonal trend higher.
• The NOAA temperature forecast expects near normal or above normal temperatures across the mainland US, except for Texas and parts of states bordering the USGC.
• Domestic natural gas production has dipped to around 104.4bcf/d according to Bloomberg
• LNG stockpiles held by Japanese utilities fell by 6.81% on the week to 2.19mn tons as of 3 December according to data released by the trade ministry.
• ExxonMobil sees 80% new lng under long-term contracts, 20% spot, according to a Bloomberg headline.
• Woodside Energy will buy 1.3mtpa of LNG for the duration of 20 years from Mexico Pacific's Saguaro Energia LNG project, the Australian company said.
• The Artic Aurora LNG tankers loaded from Norway in early November, set off for the Mediterranean to Turkey before switching back towards Lithuania and is now headed back up towards Hammerfest according to ICIS ship tracking.
• Italy’s Adriatic LNG terminal has applied to the energy ministry to boost capacity from 9.6bcm to 10.4bcm according to Montel sources.