Natural Gas End of Day Summary: Henry Hub Trades Higher

Henry Hub front month erased most of its gains near US close but continued to trade higher on the day. The EIA drilling productivity report estimates a fall of 200 bcf/d in natural gas production from Jan-Dec.

• US Natgas JAN 24 up 0.5% at 2.5$/mmbtu
• US Natgas JUN 24 down -0.9% at 2.55$/mmbtu
• Feedgas supplies to US LNG export terminals are today at 15.0bcf/d according to Bloomberg after reaching a record high of 15.13bcf/d yesterday.
• US natural gas production was yesterday at 105.0bcf/d according to Bloomberg and in line with the previous week but below the record levels seen on Dec 8 at 106.47bcf/d.
• Natural gas demand is today estimated below normal at 89.8bcf/d according to Bloomberg.
• The latest weather forecast is showing above normal temperatures across most of the US through the rest of December.
• Vessel attacks in the Red Sea are increasing. Yemen’s Iranian-backed Houthi rebels have claimed responsibility for attacks on two ships Dec. 18 - the Swan Atlantic and MSC Clara - using naval drones, according to Alarabiya news.
• BP and Euronav are the latest companies to pause all of its tanker traffic through the Red Sea, while Equinor is redirecting its vessels.
• Three LNG carriers have diverted away from the Bab al-Mandab strait amid Houthi attacks on vessels in the region, according to Argus.
• Shell has resumed operations at its Prelude LNG facility off the west coast of Australia, with the first cargo scheduled be loaded within days, Reuters said, citing two industry sources.
• The Panama Canal Authority announced last Friday that slots for LNG tankers have been reintroduced for January, supporting LNG cargo traffic through the waterway next month.