Natural Gas End of Day Summary: Henry Hub Slides

Henry Hub Front Month has fallen during US hours, with pressure from a higher-than-expected US natural gas storage build.

• US Natgas JUL 24 down 3% at 2.59$/mmbtu
• US Natgas DEC 24 down 0.7% at 3.53$/mmbtu
• EIA data for the week to May 17 showed an injection of 84bcf compared to expectations of +74-78 bcf from Bloomberg, the WSJ and Platts. the seasonal normal of +104bcf.
• US storage inventories continue to hold a strong surplus with total stocks at 2,795bcf. The five-year average is 2,209 bcf.
• The NOAA 6–14-day forecast shows above normal temperatures across the western and Southern US, although an expanding region of below normal temperatures across the Midwest.
• Lower 48 natural gas production is down today at 99.744 bcf/d, compared to 100.733 bcf/d the previous day.
• Natural gas deliveries to US LNG terminals are at 13.710bcf/d today May 30, up from 13.497 bcf/d yesterday and the highest level since March 3.
• Domestic natural gas demand is at 65.522 bcf/d/d according to Bloomberg, trending down from earlier in the month.
• European gas storage was 69% full on May 28 vs the 5-yr seasonal norm of 56% for this time of year according to GIE.
• LNG flows to Northwest Europe on May 28 were 144.91 mcm/d, 15% lower than the 30-day average according to BNEF.
• Australia’s Woodside has announced $1 bln in funding for its flagship Scarborough LNG project from state-owned Japan Bank for International Cooperation.
• JKM spot prices are holding around the $12/MMBtu level as a heat wave in India drives up gas demand, according to Bloomberg.
• Argentina’s state-run energy company Enarsa has bought at least seven LNG cargoes for July and August delivery, according to Bloomberg.