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US Natgas Gains Amid Strong Domestic and Export Demand

NATGAS

Henry Hub front month is rising today with intense cold in the US driving higher demand and a drop in production while LNG export demand is strong amid ring concerns for escalating Middle East tensions after US and UK strikes on Houthi rebel targets in Yemen.

    • US Natgas FEB 24 up 4.5% at 3.24$/mmbtu
    • US Natgas JUL 24 up 1% at 2.88$/mmbtu
    • US Natgas JAN 25 up 0.8% at 4.06$/mmbtu
  • The EIA weekly gas inventories for the week ending Jan 5 showed a draw of -140bcf compared to the expectation for a draw of -122bcf amid an increase in demand from cold weather across the US. The total US inventories remain well above season normal levels at 3,336bcf compared to the average of 2,975bcf.
  • US natural gas production was yesterday at 103.2bcf/d according to Bloomberg with pipeline flows from all US production basins below the recent highs amid severe cold.
  • Domestic natural gas demand is up slightly on the day to 102.0bcf/d today according to Bloomberg. The US weather forecast is showing lower 48 temperatures dropping well below normal from this weekend as intense cold moves eastwards across the country. The outlook is showing warmer weather in western areas in the 8-14 day period.
  • Feedgas supplies to US LNG export terminals are up at 15.08bcf/d and just below the record high from mid December according to Bloomberg.
  • Export flows to Mexico are today at 6.31bcf/d after a recovery from start of the year lows.

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