US Natgas Extends Recovery After Storage Data Yesterday

US Henry Hub has rebounded after another below normal build in EIA storage inventories yesterday. Front month futures reached a low of 2.5$/mmbtu yesterday driven by a cooler weather forecast before finding support on the falling US storage surplus.

• US Natgas OCT 23 up 2.1% at 2.63$/mmbtu
• US Natgas MAR 24 up 0.6% at 3.32$/mmbtu
• US Natgas SEP 24 up 0.3% at 3.29$/mmbtu
• The latest EIA weekly gas inventories for the week ending 1 Sep showed a build of +33bcf compared to the five-year average for this time of year of +51bcf. Total US inventories are still above the five year average at 3,148bcf compared to the average of 2,906bcf.
• Lower 48 dry gas consumption has today dipped down to 72.8bcf/d but still holding above normal for the time of year. The latest two week NOAA forecast is relatively unchanged from yesterday with at or below normal temperatures in the north east and central areas and above normal holding on in the south and north west.
• US domestic natural gas production was yesterday estimated back up slightly at 101.6bcf/d according to Bloomberg although still below an average of around 102.4bcf/d in early August.
• Feedgas delivery flows to US LNG export terminals are today at 13.0bcf/d and in line with levels so far in Sep and compared to an average of 12.2bcf/d in Aug.
• Export flows to Mexico are today estimated at 7.0bcf/d.