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US Henry Hub Rises on Hurricane Risks

NATURAL GAS

The US Henry Hub front month has risen back up to the highest level since 15 August today as Hurricane Idalia continues to pose a risk to natural gas production, while an upward revision in the short-term weather forecasts suggests higher gas demand for cooling.

  • US Natgas OCT 23 up 1% at 2.69$/mmbtu
  • The latest 6-10 day weather forecast has been revised up with a large part of the Midwest, Northeast and US Gulf to experience above-average temperatures. Lower 48 dry gas demand today has further declined to 71.51bcf/d but demand remains well above the seasonal norm.
  • Feedgas flows to US LNG terminals have today dipped to 12.66bcf/d, down from a revised 12.87bcf/d yesterday but above the 30-day moving average of 12.18bcf/d.
  • US domestic natural gas production stood at 101.38bcf/d, well above last year’s levels and the five-year average.
  • US natural gas flows to Mexico are still well above normal at 6.85bcf/d.
  • A Bloomberg survey of four economists expects US natural gas inventories to a show a built of +26.15bcf during the EIA inventory data release tomorrow. US inventories rose by 18bcf the week prior.

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