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US Falls on High Production Despite Colder Weather

NATGAS

US Natgas drifts lower with production up near record levels, stable exports and despite cold weather raising heating demand over the coming couple of weeks. The US Henry Hub front month price is trading at the lowest since June 2021.

    • US Natgas FEB 23 down -5.7% at 3.38$/mmbtu
  • Domestic dry gas production is holding just below the record level seen last week with yesterday estimated at 102.1bcf/d. Production reached a high of 102.2bcf/d on 11 Jan compared to output around 95bcf/d this time last year.
  • The latest NOAA weather forecast shows cold weather across much of the US in the 8-14 day period although the east coast is holding near normal. Natural gas demand is today still below normal at 85.3bcf/d.
  • Deliveries to LNG export terminals are today unchanged from yesterday at 12.08bcf/d and exports to Mexico are hovering around 6.6bcf/d according to Bloomberg data.

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