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US Henry Hub Holding Gains Ahead of EIA Storage Data

NATGAS

US Henry Hub is maintaining strength this week as energy markets consider the US economic risks and potential raising of the US debt ceiling. Uncertainty over future US drilling has also provided support this week after the big drop in rig count last week however current production remains strong.

    • US Natgas JUN 23 up 1.3% at 2.4$/mmbtu
  • The latest EIA weekly gas inventories for the week ending 12 May will be released this afternoon at 10:30ET (15:30BST). The expectation is for a larger than normal build of +108bcf compared to last week at +78cf and the 5-year average for this time of year is +95bcf.
  • Domestic demand is above normal this week and up to 64.7bcf/d today with support from above normal consumption for power generation. The latest US weather forecast is showing above normal temperatures continuing to spread across the country with just the south holding on to at or slightly below normal in the 6-14 day period.
  • Natural gas production was estimated at 100.75bcf/d yesterday according to Bloomberg compared to an average of 100.6bcf/d so far this month.
  • Delivery flows to the US LNG export terminals have dipped in recent days down to 12.63bcf/d today according to Bloomberg mostly due to a reduction in supply to Corpus Christi.
  • Export flows to Mexico are today estimated up to nearly 6.4bcf/d.

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