US Higher but Holding Within Recent Range Ahead of EIA Stocks Data

US Natgas edges higher as the front month Henry Hub price bounces between 2.35$/mmbtu and 2.65$/mmbtu so far this month while awaiting more news on Freeport LNG.

• US Natgas MAR 23 up 2.6% at 2.54$/mmbtu
• Domestic natural gas demand is slightly higher today at 84.9bcf/d with below normal temperatures slowly spreading across the country. Temperatures in the Gulf Coast region are expected to remain above normal throughout the two week forecast period.
• Lower 48 dry gas production is holding relatively strong at 100.3bcf/d yesterday although is down from the record levels of just over 102bcf/d seen last month.
• The strong supplies and weak demand this winter has helped a recovery in gas storage levels back above normal. The latest EIA weekly gas inventories for the week ending 10 Feb will be released later today at 15:30GMT. The expectation is for a draw of -104bcf following on from the big draw of -217bcf last week. The 5-year average for this time of year is -150bcf.
• Natural gas pipeline deliveries to LNG export terminals are today estimated by Bloomberg at 13.3bcf/d with flows to Freeport relatively unchanged in the last couple of days at 0.48bcf/d today.