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US Natgas Holds Near Recent Lows On Cool Weather and Healthy Storage

NATGAS

US Natgas is holding steady after falling this week with cool weather expected to limit gas demand for power generation and after an above normal storage build. Front month Henry Hub is trading near the lowest since 12 May and not far above the lowest since 2020 of 1.96$/mmbtu seen on 14 April.

    • US Natgas JUL 23 down -0.1% at 2.16$/mmbtu
  • The latest EIA weekly gas inventories for the week ending 26 May showed a build of +110bcf compared to the five year average of +103bcf and expectation of a +107bcf build. Total US inventories are at 2,446bcf as of 26 May and 349bcf above the five-year average.
  • The latest US weather forecast has cooled slightly from yesterday with below normal temperatures in southern and central regions now spreading to the east coast. Domestic demand is today holding above normal at 66.0bcf/d according to Bloomberg.
  • Domestic production dipped slightly yesterday to 100.3bcf/d compared to output over 101bcf/d earlier in the week according to Bloomberg estimates.
  • Delivery flows to the US LNG export terminals are unchanged from yesterday down at 12.4bcf/d compared to around 13.4bcf/d seen earlier in the week.
  • Export flows to Mexico are estimated at 6.4bcf/d.

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