Natural Gas End of Day Summary: Henry Hub Slumps

Henry Hub has plummeted during the day and is heading for its lowest close since Jan. 3. Providing downside are below-average stock draws and forecasts for milder weather which will taper demand.

• US Natgas FEB 24 down -6.6% at 2.68$/mmbtu
• US Natgas JUL 24 down -2.5% at 2.73$/mmbtu
• The EIA weekly gas inventories for the week ending Jan 12 showed a draw of -154bcf compared to the expectation for a draw of -167bcf according to a Bloomberg survey and the seasonal normal draw of -122bcf.
• The total US inventories remain near the top of the previous five-year range at 3,182bcf compared to the average of 2,880bcf.
• Domestic natural gas demand is falling back towards normal levels with today estimated at 111.1bcf/d compared to the five-year average around 105bcf/d.
• Cold weather this week is expected to be replaced by above normal across the US from around Jan 23 and remain warm until the end of the month.
• The recent freeze in the US has disrupted scheduled LNG exports out of the US, people familiar with the matter told Bloomberg.
• The Freeport LNG export facility shut the liquefaction train 2 on 16 January and train 3 tripped on 17 January amid mechanical issues.
• There are currently no LNG vessels transiting the Suez Canal amid heightened tensions off the coast of Yemen according to Kpler.
• Asian LNG demand is projected to increase by 5% to 12m mt in 2024, following the 2% growth in 2023, according to Wood Mackenzie.