Natural Gas Summary End of Day Summary: Henry Hub Drops

Henry Hub front month fell sharply after headlines indicating Israel and Hamas were near a ceasefire agreement. While later comments have been more tentative on a deal, front month remains lower. Below average storage withdrawals have also added downside.

• US Natgas MAR 24 down -2% at 2.06$/mmbtu
• US Natgas AUG 24 down -1.3% at 2.57$/mmbtu
• Bloomberg reports that Al Jazeera has deleted a tweet, "saying Israel agrees to pause in fighting." A report which was widely circulated and prompted moves in oil markets. See earlier bullet.
• The EIA weekly gas inventories for the week ending Jan 26 showed a draw of -196bcf compared to the expectation for a draw of -208bcf according to a Bloomberg survey and the seasonal normal draw of -184bcf.
• The US inventories surplus has reduced in recent weeks, but total stocks remain above normal at 2,659bcf compared to the previous five-year average of 2,546cf.
• US domestic gas production was yesterday estimated relatively unchanged on the day at 104.4bcf/d
• Feedgas supply to US LNG export terminals are today at 14.17bcf/d with Freeport supplies still curtailed by a unit outage which is expected to last about a month.
• Russia’s gas output rose 3.3% y/y in December to 61.9bcm according to Bloomberg based on Federal Statistics Service data.
• The facility at the Shell-backed LNG Canada export project near Kitimat, British Columbia, is more than 90% complete, Shell’s CEO Wael Sawan said
• Shell does not yet see an influence of the ongoing diversions of Red Sea cargoes on the LNG market due to cargo swapping, but sees opportunity for new demand, according to its CEO Wael Sawan, cited by Interfax.