Natural Gas End of Day Summary: Henry Hub Surges

Henry Hub surged during the day, supported by lower-than-expected inventory builds and forecasts for cooler weather.

• US Natgas NOV 23 up 7.7% at 3.19$/mmbtu
• US Natgas APR 24 up 4% at 3.15$/mmbtu
• The latest EIA weekly gas inventories for the week ending 29 Sep showed a build of +86bcf compared to a Bloomberg survey expecting a +94bcf build and the five-year average for this time of year of +101bcf.
• The total US inventories surplus has closed slightly again this week, but stocks are still above normal at 3,445bcf compared to the average of 3,243bcf.
• Domestic natural gas demand has fallen back to near seasonal normal levels at 66.2bcf/d today according to Bloomberg.
• Below normal temperatures on the East Coast are set to move back towards normal early next week as warmer weather spreads across most of the country in the 8-14 day period of the forecast according to NOAA.
• US domestic natural gas production was yesterday estimated at 100.9bcf/d according to Bloomberg in line with the volumes seen so far this month but below the Sep average of 101.5bcf/d.
• Natural gas deliveries to US LNG export terminals are today stable at 12.61bcf/d according to Bloomberg with flows still curtailed by Cove Point maintenance.
• Export flows to Mexico are unchanged today at 7.1bcf/d.
• Winter restocking spot demand for LNG among Asian buyers has been more tepid than last year, according to Argus Media.
• Kuwait expects its Durra gas field to be fully commissioned by 2029 according to Kuwait Petroleum executive – the field holds an estimated 20 trillion cubic feet of proven reserves.
• The Turkish Energy Minister Alparslan Bayraktar said Thursday he plans to visit Israel in November to discuss the transit of gas to Europe through Turkey.
• European Commission deputy director-general for energy, Matthew Baldwin says the EU has no plans to sanction imports of Russian LNG or pipeline gas according to Montel.