US Natgas Rallies As Cold Weather Spreads Across Country

US Natgas continues the gain from late last week as cold weather stretches across the US, increasing heating demand.

• US Natgas FEB 23 up 9% at 3.46$/mmbtu
• Western and central regions are expecting below normal temperatures in the 6-14 day forecast but the Gulf Coast and some eastern areas are just hanging on to the warmer weather. Domestic consumption is today estimated near normal at 98.4bcf/d having spent most of the month so far below normal.
• High production levels are limiting upside moves with the weekend output still up around 101.6bcf/d.
• Deliveries to US LNG export terminals are today down to 11.83bcf/d due to lower supply to Sabine Pass LNG. Flows averaged around 12.5bcf/d over the previous week.
• Natural gas exports to Mexico dipped slightly over the weekend to around 6.3bcf/d from an average of 6.8bcf/d last week.