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US Natgas Edges Higher With Ongoing Warm Weather

NATGAS

US front month Henry Hub is edging higher but holding within yesterday’s trading range with strong cooling demand due to warm weather set against stable supplies and a daily drop in LNG export flows.

    • US Natgas AUG 23 up 1.3% at 2.72$/mmbtu
  • The latest NOAA two week outlook shows slightly warmer temperatures than forecast yesterday especially in the southern and Gulf Coast region. Above normal is expected throughout the forecast everywhere except the far northeast of the country. Domestic gas consumption has increased today up above the previous five year seasonal range to 76.8bcf/d according to Bloomberg.
  • Delivery flows to the US LNG export terminals have fallen from 13.1bcf/d yesterday to 12.5bcf/d today according to Bloomberg due to a drop in supplies to Freeport of 0.4bcf/d plus a small decline to Sabine Pass.
  • US production was yesterday up at 101.3bcf/d and just above the average of the month so far of 101.0bcf/d.
  • Export flows to Mexico are above seasonal normal levels up at 7.1bcf/d today.

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