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US Natgas Continues to Drift Lower on Healthy Supplies

NATGAS

US Natgas continues to drift back down this week after the rally in the week to 3 March. Downside pressure on prices comes from high storage levels, ongoing strong production, moderate demand and with Freeport LNG yet to return to full operations.

    • US Natgas APR 23 down -2.3% at 2.48$/mmbtu
  • The latest EIA weekly gas inventories released yesterday showed another smaller than normal draw at -84bcf compared to the 5-year average for this time of year of -107bcf. Total US inventories are 19.8% above the five year average at 2,030bcf.
  • Total deliveries to US LNG export terminals are today estimated unchanged from yesterday at 13.2bcf/d with supply to Freeport LNG steady at 0.99bcf/d according to Bloomberg.
  • Lower 48 dry gas demand is today just above normal at 86.7bcf/d with the latest NOAA forecast showing temperatures just below normal throughout the 6-14 day period.
  • Natural gas production is steady at around 100.6bcf/d yesterday and exports to Mexico are still at 5.7bcf/d.

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