Natural Gas End of Day Summary: Henry Hub Recoups Losses

Henry Hub front month has recovered most of its earlier losses after rebounding from an intraday low of $2.389/MMBtu. Global gas markets continue to keep a watchful eye for the potential impacts of disruption to Red Sea traffic.

• US Natgas JAN 24 down -0.1% at 2.5$/mmbtu
• US Natgas JUN 24 down -2.9% at 2.47$/mmbtu
• US natural gas production was yesterday still high at 104.8bcf/d according to Bloomberg and in line with the previous week but below the record levels seen on Dec 8 at 106.47bcf/d.
• Gas output in the seven US shale basins is forecast to fall by 0.2bcf/d to 99.025bcf/d in Jan while Dec was also revised down from 99.638bcf/d to 99.225bcf/d according to the EIA drilling productivity report.
• The number of DUCs fell to the lowest on record suggesting producers are aiming to bring production online sooner.
• Natural gas demand has increased back towards normal to 97.4bcf/d today according to Bloomberg.
• The weather forecast still shows above normal temperatures for the coming ten days but could dip back towards normal in the last couple of days of December especially in the south.
• Feedgas supplies to US LNG export terminals are today still near the record highs up at 15.0bcf/d again today according to Bloomberg.
• Norway’s Equinor has signed an agreement to supply 111TWh, 10bcm per year, of natural gas to Germany’s SEFE starting 1 January for the duration of ten years, the Norwegian firm said.
• The Alexandroupolis FSRU has arrived in Greece and is expected to start receiving cargoes early next year according to ICIS.
• Transshipments of Russian Yamal LNG in Belgium are increasing this month, according to Bloomberg ship tracking data.