US Gas Continues to Fall

US Natgas continues fall since the fire at Freeport LNG on excess supply and lower domestic demand.

• Before the export terminal outage, US gas was trading up to 9.6$/mmbtu on strong domestic and overseas demand combined with low stocks and stable production. LNG export demand has dropped by approximately 2bcf due to the Freeport outage resulting in a chance for stock levels to potentially build up over the coming weeks. Today the market is down another 3.5% to 6.70$/mmbtu.
• US lower 48 domestic gas demand has reduced as temperature forecasts have become more mixed therefore reducing power station load. Demand is estimated at 67.2 today down from an average of approximately 71.6bcf last week.
• Gas production is relatively unchanged at 95.5bcf and deliveries to LNG export terminals are at 10.73bcf.