US Natgas Holding With Higher Demand but Strong Supplies

US Henry Hub is slightly weaker today after trading between a low of 1.96$/mmbtu and high of 2.66$/mmbtu in the last couple of weeks. Healthy storage and steady production are balanced against a small increase in domestic demand and strong LNG exports.

• US Natgas MAY 23 down -0.8% at 2.22$/mmbtu
• The US weather forecast remains mixed with cold weather in central and eastern areas but above normal in the west. Domestic demand has moved above normal in the last couple of days with today estimated up to 72.0bcf/d.
• Flows to LNG export terminals are today estimated near last week’s record highs at 14.84bcf/d according to Bloomberg. Strong exports could be at risk later this summer if Europe makes good progress in refilling natural gas storage ahead of the next winter heating season. There is a remote possibility of US LNG cargo cancellations later this summer if Europe is really weak and US gets strong.
• Natural gas production increased over the weekend up to a high of 101.7bcf/d yesterday while exports to Mexico have dipped slightly back to 5.5bcf/d today.