Natural Gas End of Day Summary: Henry Hub Rises
US Henry Hub has been trading higher on the prompt during the day, although has relinquished some of its earlier gains. A four-month high boost in LNG export flows, cold weather in the near term, and support from a wider energy market rally due to Middle East tensions support prices.
- US Natgas NOV 23 up 0.6% at 3.36$/mmbtu
- US Natgas APR 24 down -0.7% at 3.23$/mmbtu
- Union workers at Chevron’s LNG sites in Australia gave notice on Monday to resume strike action on 19 October, while Chevron has asked Australia's industrial tribunal to help resolve a small number of issues blocking a deal with unions according to Chevron, cited by Reuters.
- Feedgas intake at US LNG export facilities has recovered to the highest since late May at 13.54bcf/d according to Bloomberg driven the highest flows to Sabine Pass since late April and a rise in Freeport LNG supply despite Cove Point LNG maintenance.
- Domestic natural gas demand has risen back above normal to 70.8bcf/d today according to Bloomberg compared to the previous five-year average of around 66bcf/d. The latest weather forecast shows below normal temperatures expected in central and eastern areas in the 6-10 day period before warmer weather starts to spread in from the west into the second week of the outlook.
- US domestic natural gas production rose back over 102bcf/d over the weekend and is steady around 101.8bcf/d today according to Bloomberg to move back above levels seen this time last year.
- Winter European gas markets remain finely balanced and prone to volatility despite storage levels 96% full and around 2bcm available from gas stored in Ukraine according to Wood Mackenzie.
- Global LNG imports are forecast to rise by 2% month on month in October to 31.3mn tons. This is up by 1% year on year according to BNEF.
- Kuwait will prepare the infrastructure for the Durra offshore gas field, Kuwait’s oil minister said Oct. 9, while announcing a new strategy to raise oil production.