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US Extends Decline Below 2$/mmbtu on Healthy Supplies

NATGAS

US Henry Hub falls below 2$/mmbtu to the lowest since 2020 driven by healthy supplies and high gas storage levels.

  • US Natgas MAY 23 down -1.7% at 1.97$/mmbtu
  • The EIA weekly gas inventories released yesterday for the week ending 7 Apr showed the first build of the year of +25bcf compared to the 5-year average for this time of year of +16bcf. Total US inventories are near the top of the five year range at 1,855bcf compared to the average of 1,539bcf.
  • Natural gas production was yesterday stable at 100.6bcf/d compared to the average of 100.3bcf/d so far this month.
  • The latest weather forecast shows above normal temperatures expected in central areas and the Gulf Coast region but below normal in the west. Domestic demand was yesterday estimated below normal at 61.3bcf/d according to Bloomberg.
  • Flows to LNG export terminals are today estimated at 14.3bcf/d according to Bloomberg compared to 14.79bcf/d yesterday due to a slight drop in flows to Sabine Pass.

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