Natural Gas End of Day Summary: Henry Hub Surges

US Henry Hub front month has maintained its rally today and is on track for a weekly gain of around 12.5%. Warmer weather, increased flows to Mexico, and lower production are adding support.

• US Natgas JUL 24 up 3.1% at 2.91$/mmbtu
• US Natgas DEC 24 up 2% at 3.75$/mmbtu
• US gas rigs fell 2 during the week to 98 – down 37 rigs, or 27.4% on the year, according to Baker Hughes. This is the lowest since Oct. 2021
• Domestic natural gas demand has edged slightly lower but remain above the previous five-year average at 67.1bcf/d today according to Bloomberg.
• The latest NOAA forecast has again shifted slightly warmer with above normal temperatures now expected across much of the country throughout the 6–14-day period as a potential boost to cooling demand.
• US domestic natural gas production was yesterday down slightly to 98.8bcf/d according to Bloomberg.
• US terminal feedgas flows are today at 13.11bcf/d according to Bloomberg.
• Export flows to Mexico are holding above the five-year range high at 7.03bcf/d today according to Bloomberg.
• Total European gas storage was up to 70.86% full on June 5 according to GIE compared to the five-year seasonal average of 59.3%. Net injection rates have this week fallen near the lowest since late April.
• France’s CGT union on Friday said it had filed a strike notice for the period between 14 June and 13 September to revise salary scales in the energy sector, La Tribune reported.
• The number of US LNG export cargoes remained unchanged last week at 26, according to the EIA as feedgas supplied to terminals holds slightly below normal.