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US Henry Hub Falls Back From Friday Peak

NATGAS

US Henry Hub is falling back from the highs of around 2.68$/mmbtu seen on Friday with a dip in domestic demand while production remains strong.

    • US Natgas JUN 23 down -2.9% at 2.51$/mmbtu
  • Domestic production is up to around 101bcf/d compared to an average of around 100.6bcf/d in the previous week. Concern for future output was supporting the market last week after a drop in rig count on 12 May. The Baker Hughes rig count released on Friday 19 May was unchanged on the week at 141.
  • Domestic demand has drifted back towards normal in recent days with today estimated at 62.6bcf/d according to Bloomberg. The current NOAA 6-10 day US weather forecast is showing at or below normal temperatures in southern and coastal regions but above normal in central US and in the north.
  • Delivery flows to the US LNG export terminals have recovered up to 13.1bcf/d today following a dip last week to around 12.3bcf/d according to Bloomberg.
  • Export flows to Mexico are today estimated at 6.1bcf/d.

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