US Natgas Gains Amid Higher LNG Flows and Warm Weather

Henry Hub is heading for a net gain on the week amid volatile trading with front month recovering some of the losses from yesterday with a recovery in LNG export flows and a warm weather forecast.

• The EIA weekly gas inventories for the week ending June 21 showed a near expected injection of 52bcf compared to the seasonal normal injection of 82bcf. Despite the below normal increase in recent weeks, the US storage inventories continue to hold above the previous five year range, with total stocks at 3,097bcf compared to the previous five year average of 2,569bcf.
• US domestic natural gas production was yesterday holding steady at 101.2bcf/d, according to Bloomberg, compared to an average of 101.7bcf/d over the previous week.
• US LNG export terminal feedgas flows are today estimated up to 12.9bcf/d, according to Bloomberg. The daily increase is driven primarily by a recovery in Sabine Pass feedgas although flows remain nearly 1bcf/d below the highs seen at times earlier this year.
• Domestic natural gas demand is down again to 71.5bcf/d according to Bloomberg from a recent high of 77.9bcf/d on June 26 but still just above the seasonal normal. The two week weather forecast is relatively unchanged since yesterday with above normal temperatures expected across the US except in the far north, with the biggest anomalies in the Gulf Coast and Lower Atlantic regions.
• Export flows to Mexico are at today estimated at 6.54bcf/d according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures volume was 340k on June 27.
  • US Natgas AUG 24 up 2.2% at 2.74$/mmbtu
    
  • US Natgas JAN 25 up 0.6% at 3.89$/mmbtu
  • US Natgas JUL 25 down 0.1% at 3.42$/mmbtu