US Henry Hub Moves to Rangebound

Henry Hub front month is trading near rangebound having seen gains making way for losses and vice versa. Prices have ranged between $2.996/MMBtu and $3.074, oscillating between moderate gains and losses. The second highest daily feedgas intakes into LNG terminals are countering high storage inventories, tepid demand for gas heating and higher domestic production.

• Although largely flat on the day, Henry Hub looks set for losses of 13-14% since the start of the week, as milder weather and high storage levels keep the market at ease going into the winter months. Henry Hub is also down around 10% on the month, despite cooling temperatures.
• US Natgas DEC 23 unchanged at 3.04$/mmbtu
• US Natgas MAY 24 down -1.3% at 3.02$/mmbtu
• Feedgas intake into US LNG terminals has climbed to its highest daily level since April at 14.778 bcf/d according to Bloomberg compared to the record 14.888 bcf/d on Apr 16. This puts it at the second highest level on record.
• Domestic natural gas demand is following the seasonal trend higher up to 82.1bcf/d today according to Bloomberg. Cool weather on the East Coast and Gulf Coast in the coming week will gradually give way to above normal spreading in from the west by late next week. The latest NOAA 6-14 day forecast shows above normal temperatures across the whole country except the far West Coast.
• Domestic natural gas production is today still near record levels at 105.0bcf/d according to Bloomberg and in line with the average so far in November but above the October average of 102.7bcf/d.
• Export flows to Mexico have dipped today to 5.8bcf/d today but still above the five year average with the seasonal decline.