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US Henry Hub Heading for Net Weekly Gain

NATGAS

US Henry Hub front month eases lower but is still heading for a net gain on the week with support from strong demand this week and with a slowly decreasing storage surplus.

    • US Natgas OCT 23 down -0.9% at 2.74$/mmbtu
    • US Natgas MAR 24 down -0.5% at 3.41$/mmbtu
    • US Natgas SEP 24 down -0.5% at 3.33$/mmbtu
  • The latest EIA weekly gas inventories for the week ending 25 Aug showed a build of +32bcf compared to the five-year average for this time of year of +53bcf. The surplus in total US inventories has narrowed slightly in recent weeks but stocks are still above the five year average at 3,115bcf compared to the average of 2,854bcf.
  • Lower 48 dry gas consumption has dipped again today to 68.7bcf/d and now only just above the seasonal five year average. The latest two week NOAA forecast is unchanged from yesterday with above normal temperatures across most of the US except the far West Coast.
  • US domestic natural gas production remains strong despite falling US rigs counts this year. Yesterday was estimated just below the August average at 101.7bcf/d according to Bloomberg. The updated Baker Hughes weekly rigs counts are due out later today.
  • Gas delivery flows to LNG export terminals are today relatively unchanged at 12.7bcf/d compared to a revised 12.9bcf/d from yesterday.
  • Export flows to Mexico are still well above normal at nearly 7.3bcf/d today.

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