Natural Gas End of Day Summary: Henry Hub Slides
Henry Hub front month has fallen to the lowest level since 23 October, extending last week’s decline, driven by high stock levels, below normal demand and high production levels.
- US Natgas DEC 23 down -2.6% at 2.88$/mmbtu
- US Natgas MAY 24 down -2.3% at 2.82$/mmbtu
- Some US weekly data release dates are adjusted this week due to the Thanksgiving holiday on Thursday. The EIA gas inventory report will be published on 22 November.
- Managed money net long positions on seven US Henry Hub contracts last week fell to a six week low after reaching a peak for the year on Nov 3 according to Commitments of Traders data released on Friday.
- Russia’s Gazprom and Venezuela’s PDVSA are discussing co-operation in new gas projects in Venezuela according to Russian news agency RIA.
- Venezuela is nearing to approve a license for Shell and the National Gas Company of Trinidad and Tobago to develop the Dragon gas field, which would add initial volumes of 300mc/d for Trinidad’s LNG production from 2026, sources told Reuters.
- Domestic natural gas demand has increased from late last week but is still below the five year average at 81.4bcf/d according to Bloomberg. Temperatures are expected to cool later this week with below normal temperatures forecast across most of the country in the 6-14 day period to help support demand.
- Domestic natural gas production is maintaining just below the record high seen earlier this month with today estimated at 105.9bcf/d according to Bloomberg and compared to around 100bcf/d this time last year.
- Feedgas flows to US LNG export terminals are today at 14.43bcf/d according to Bloomberg compared to the average so far in November of 14.2bcf/d.
- US LNG exports are currently more profitable to Asia in January 2024, February 2024 and March 2024 according to BNEF.