Natural Gas End of Day Summary: Henry Hub Shrugs of Stock Build

Above-expectation US stock builds briefly pushed Henry Hub to move rangebound, but front month has since regained ground. US natgas prices remain supported by warmer weather forecasts expected to boost cooling demand.

• US Natgas JUL 24 up 1.5% at 2.8$/mmbtu
• US Natgas DEC 24 up 0.6% at 3.67$/mmbtu
• The EIA weekly gas inventories for the week ending May 31 showed an injection of 98bcf compared to the expectation for an injection of 92bcf according to a Bloomberg survey and the seasonal normal injection of 105bcf.
• US storage inventories continue to hold a strong surplus with total stocks at 2,893bcf compared to the previous five-year average of 2,312bcf.
• Domestic natural gas demand is holding above the seasonal five year average at 67.9bcf/d according to Bloomberg.
• The latest NOAA forecast is slightly warmer in the 8-14 days period with above normal temperatures now expected across most of the US replacing the below normal in eastern areas in the 6-10 day period.
• Robust secular growth and seasonal weather should support rising US natural gas demand and prices, according to BNEF.
• Indian Oil Corp. is in talks with LNG suppliers for long-term contracts although is waiting for policy guidance from the government, according to Bloomberg.
• Brazil’s Guanabara Bay regasification terminal is set to receive its first LNG cargo in nearly five months on June 6 according to Platts vessel tracking.
• Feedgas requirement for the forthcoming LNG wave and a gas demand surge from data centres/AI and crypto mining on the margin were a focus of US earnings calls, according to IEA analyst Greg Molnar.