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US Henry Hub Pulls Back Amid Warmer Forecast After Surge Last Week

NATGAS

US Henry Hub is pulling back after surging to a peak of 3.64$/mmbtu on Friday driven by a smaller than expected build in storage data last week. Front month is back to levels seen earlier last week with warmer weather expected later this week and as global energy markets focus on the conflict in Israel .

    • US Natgas DEC 23 down -4.1% at 3.34$/mmbtu
    • US Natgas MAY 24 down -1.9% at 3.09$/mmbtu
    • US Natgas NOV 24 down -1.1% at 3.77$/mmbtu
  • US natural gas demand is today estimated back above normal at 78.7bcf/d after dropping down to as low as 66bcf/d on 26 Oct. The cold weather expected in eastern regions in the coming days will return to normal or even slightly above by the end of the week. The latest NOAA two week forecast suggests above normal temperatures for much of the country in the 6-14 day period.
  • Domestic natural gas production was yesterday holding steady at 103.2bcf/d just above the average of 102.7bcf/d seen so far in October and compared to around 100bcf/d this time last year.
  • Feedgas deliveries to US LNG export facilities are up to 14.4bcf/d today according to Bloomberg from around 13.7bcf/d last week due to an increase in supply to Sabine Pass LNG.
  • Export flows to Mexico are today estimated at 6.4bcf/d.

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