Natural Gas End of Day Summary: Henry Hub Volatile

Henry Hub briefly surged during US hours before reversing to be down on the day. Lower production, and a rebound in LNG feedgas added some support, while downside remained from warmer weather forecasts next week.

• The return of warmer weather in the US next week is driving down front month. This follows record demand levels yesterday due to the arctic blast which hit the country.
• US Natgas FEB 24 down -0.5% at 2.89$/mmbtu
• US Natgas JUL 24 up 0.9% at 2.81$/mmbtu
• Domestic natural gas demand has dipped today but remains above normal at 122.1bcf/d today according to Bloomberg.
• Feedgas flows to US LNG export terminals is back up to 12.32bcf/d from as low as 8.2bcf/d yesterday according to Bloomberg.
• US natural gas production yesterday fell to the lowest since Dec 2022 at 91.4bcf/d according to Bloomberg before recovering slightly to 95.3bcf/d on Jan 17.
• LNG stockpiles held by Japanese utilities rose by 2.79% last week to 2.58mn tons as of 14 January according to data released by the trade ministry.
• Mexico Pacific will supply an additional 1.2mtpa of LNG to Exxon Mobil for the duration of 20 years, the firm said, cited by Reuters.
• LNG freight prices are weakening despite increased tanker diversions away from the Red Sea via the Cape of Good Hope, according to Spark Commodities.
• The arbitrage economics of pulling US cargoes to Asia over Europe have been in negative territory since Jan. 3, according to Platts, following a general trend since September.
• Bangladesh’s Summit Group has signed a preliminary pact to supply 1.5m mtpa of LNG per year to state-run Petrobangla for 15 years starting Oct. 2026, according to Reuters.