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US Natgas Edges Lower as Cooler Weather to Ease Demand

NATGAS

US Henry Hub is edging lower again today and holding within the 2.2$/mmbtu and 2.45$/mmbtu range seen over the last week. Easing pressure on cooling demand is combining with strong production, healthy storage, and steady LNG exports to limit upside moves.

    • US Natgas JUL 23 down -1.3% at 2.3$/mmbtu
  • The latest weather forecast remains largely unchanged from yesterday with below normal temperatures in the south in week one spreading northwards in the second week. Domestic demand is today slightly higher up to 65.4bcf/d today according to Bloomberg estimates to hold above the five year average level.
  • Domestic production is today estimated at 101.3bcf/d to bring the May average to 100.8bcf/d and in line with the output seen during April.
  • Delivery flows to the US LNG export terminals are today estimated slightly higher at 13.6bcf/d according to Bloomberg after dipping as low as around 12bcf/d in mid May.
  • Export flows to Mexico are estimated at 6.5bcf/d.

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