Natural Gas End of Day Summary: Henry Hub Sees Late Surge

Henry Hub rebounded strongly near US close to be trading higher on the day, amid a volatile session. Front month had retreated to rangebound following EIA data showing an expected below-average storage draw for this time of year. Higher demand has provided some upside.

• US Natgas JAN 24 up 2.4% at 2.39$/mmbtu
• US Natgas JUN 24 up 3.1% at 2.53$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 8 showed a draw of -55bcf compared to the expectation for a draw of -56bcf according to a Bloomberg survey.
• Domestic natural gas production has dipped down to 104.32bcf/d according to Bloomberg.
• Lower 48 natural gas demand rose above the five-year range to 98.05bcf/d.
• The NOAA weather forecast has been slightly adjusted with most of the US seeing above normal temperatures throughout this month.
• Feedgas flows to US LNG export terminal is down today to 14.09bcf/d, from 14.55bcf/d yesterday and below the 30-day moving average of 14.40bcf/d as flows to Corpus Christi dripped further to 1.60 bcf/d..
• LNG shippers are likely to engage in more destination swap deals for Asia-bound cargoes in 2024, to circumvent the congestion at the Panama Canal, according to BNEF.
• Talks between Venezuela’s PDVSA and Shell on the operation of a gas field have stalled, according to Reuters.
• Natural gas flows from Libya’s Mellitah gas plant to Italy’s Gela terminal resumed on Thursday, one day earlier than expected, Eni said.
• Russian gas flows to China via the Power of Siberia pipeline have risen since mid-November, Gazprom said, cited by Interfax.