US Falls Back After Month Long Rally

US Natgas drifts back as European gas prices remain unchanged on the day due to stable gas supply from Russian to Europe.

• US Natgas SEP 22 down -2% at 8.39$/mmbtu
• The 6-10 day weather forecast for the US remains above normal and is supporting domestic demand. Lower 48 dry gas demand has been above normal for much of the last month and has driven front month up over 50% during July after prices had fallen due to announcement of the extended Freeport LNG outage. Demand is relatively unchanged today at 71.4bcf.
• Gas production has also been well above normal since the start of April has supply tries to keep up with strong domestic and overseas export demand. Production is slightly down today at 96.5bcf but remains well above the 5-year range.
• Deliveries to LNG export terminals are down this week at 10.6bcf, due to lower flows to Sabine Pass. Flows are still at the top end of the 5-year range despite the missing 2bcf from Freeport LNG.