U.S. Natural Gas Faces Downside Pressure on Monday

U.S. Natural gas slipped on Monday on forecasts for greater gas supply and increasing coal use for power gen.

• US Natgas JUL 24 down -2.5% at 2.81$/mmbtu
• U.S. Lower 48 production is growing with Appalachia output surging 0.5 bcfd over the weekend, which coincides with the start of flows on the Mountain Valley Pipeline (MVP).
• Strong temperatures and heir associated higher power demand should help to prove supportive.
• Money managers increased net long positions on seven US Henry Hub contracts last week to the most bullish since November.
• LSEG said gas output in the Lower 48 U.S. states stood at an average of 98.1 bcfd so far in June, the same as the 98.1 bcfd in May.
• LSEG forecast that heat would boost gas demand in the Lower 48, including exports, from 96.6 bcfd this week to 102.2 bcfd next week.
• Weather across the Lower 48 states would remain hotter than normal until at least July 2 according to recent forecasts.
• Gas flows to the seven big U.S. LNG export plants, meanwhile, were at 12.9 bcfd so far in June, the same as the 12.9 bcfd in May.
• US LNG export terminal feedgas flows are today at 13.14bcf/d, according to Bloomberg, with Sabine Pass LNG supplies back up to 4.37bcf/d from a low of 3.74bcf/d on June 14. Corpus Christi feedgas has also recovered after a dip over the weekend.
• Feedgas supply to the Cove Point LNG US export terminal has fallen from 0.82bcf/d yesterday to 0.68bcf/d today due to scheduled pipeline maintenance, according to Bloomberg.