US Higher on Forecast of Above Normal Temperatures

US Natgas recovering some ground this week with the potential for higher temperatures having previously collapsed due to the LNG terminal outage. Aug22 trading up 2.3% to 6.72$/mmbtu today.

• Front month fell to just above 6$/mmbtu on 27^th June, a level not seen since early April as a return to normal temperatures and reduced LNG exports created a surplus of supplies.
• The weather forecasts are now showing signs of a return to above normal temperatures next week which could push domestic demand back towards range highs again. Lower 48 demand is currently near normal at approximately 66.75bcf.
• Gas production is estimated slightly lower at 95.1bcf and deliveries to LNG export terminals remains relatively unchanged from yesterday at 10.7bcf.