US Henry Hub Falls Back From Weekly High Yesterday

Henry Hub front month is easing back from gains seen earlier this week from a high of nearly 2.37$mmbtu yesterday. Improved market fundamentals this year have limited market price upside moves with strong gas supply and healthy storage amid light domestic gas demand. The risk of a recession in the US remains a downside risk for gas demand.

• US Natgas JUL 23 down -3.4% at 2.27$/mmbtu
• Storage stocks peaked at nearly 24% above the five year average in early March and are still 17.7% above. The latest EIA weekly gas inventories for the week ending 2 June showed a build of +104bcf compared to expectation of a +114bcf build and a normal of +103bcf for this time of year.
• Above normal temperatures in the Gulf Coast region as well as central and eastern areas continue to provide some support with potential for higher cooling demand. Domestic demand is today slightly lower but still just above average at 65.3bcf/d according to Bloomberg.
• Domestic production is holding slightly lower this week with today estimated at 99.7bcf/d compared to an average of nearly 101.2bcf/d during May.
• Delivery flows to the US LNG export terminals are again around the lows of the year at 11.7bcf/d due to ongoing Sabine Pass maintenance.
• Export flows to Mexico are today estimated up at 6.8bcf/d.