Natural Gas End of Day Summary: Henry Hub Strengthens

Henry Hub is up strongly today, heading for its highest close since Jan. 18. Front month has found support from recovering LNG export flows, the slow recovery in US production following cold weather disruption, and a slightly cooler temperature forecast.

• US Natgas FEB 24 up 7.1% at 2.63$/mmbtu
• US Natgas JUL 24 up 2.2% at 2.66$/mmbtu
• US domestic dry gas production is still slowly recovering up to102.6bcf/d today.
• North Dakota associated gas production was down 600-750mcf/d according to Bloomberg yesterday.
• Feedgas supplies to US LNG export terminals have rebound up to 14.0bcf/d.
• Domestic natural gas demand has dropped again and below the five-year average at 92.7bcf/d according to Bloomberg.
• The latest US weather forecasts still shows above normal temperatures across most of the country into the start of Feb although with nearer normal expected on the Gulf Coast and the East Coast.
• The LNG industry has begun intensifying its lobbying efforts as the Biden administration is set to unveil new plans for environmental scrutiny, according to Bloomberg.
• The European energy crisis is over as Europe’s dependency on Russian pipeline gas flows has been replaced, head of research at Repsol, Antonio Merino, said, cited by Montel.
• LNG stockpiles held by Japanese utilities declined by 2.73% last week to 2.49mn tons as of 21 January according to data released by the trade ministry, cited by Bloomberg.
• Japan’s LNG imports fell 8% to 66.2m mt in 2023, the lowest since 2009, according to Reuters citing Ministry of Finance Data.
• MNI COMMODITY WEEKLY: Iranian Escalations Unrestrained by Oil Supply Fears – Full piece here: https://enews.marketnews.com/ct/x/pjJscQSKn74I6a9iJxp0Gg~k1zZ8KXr-kA8x6nDWJ72ptIPjO1OcQ