US Maintains High Level on Strong Domestic and Overseas Demand

US Natgas steady with high domestic and overseas demand maintaining front month over 9$/mmbtu. The US market has fallen back in recent days following the downward correction in European gas markets.

• US Natgas OCT 22 down -0.3% at 9.1$/mmbtu
• TTF OCT 22 up 0.9% at 242.1€/MWh
• Weather forecasts continue to show above normal temperatures across the US especially on the West Coast and Midwest in the 6-10 period. California has declared a state-wide grid emergency to cope with the surge in cooling power demand with electricity use expected to be a 5-year high early next week.
• US lower 48 dry gas demand was 73.2bcf/d yesterday while production maintained high levels around 99.6bcf/d.
• With the 2bcf/d from Freeport LNG still missing, deliveries to LNG export terminals continue at 11.1bcf/d and exports to Mexico are also stable at 6.8bcf/d.
• EIA stocks data due for release later today is expected to report a build of 58bcf compared to a normal build of 46bcf for this time of year. Total US stocks are still 11% below the 5-year average at 2,579bcf.