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US Gas Drifting Lower

NATGAS

US natgas drifting slightly lower on wider market selloff and with falling temperatures easing demand. Front month Jul22 trading down 0.4% to 6.78$/mmbtu

  • Cooler weather forecast for next week will likely help to ease domestic demand further. Lower 48 demand is estimated down marginally from yesterday at 67.4bcf. Demand hit a peak of 73.2bcf a week ago but remains above levels of about 65bcf seen before the hot weather.
  • Gas production is however also down by a similar amount today to 95.16bcf. Deliveries to LNG export terminals are at 10.38bcf and pipeline exports to Mexico are estimated as unchanged at 7.08bcf.

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