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US Natgas Recovers After EIA Driven Fall Yesterday

NATGAS

US Natgas recovers on cooler weather forecast after a drop yesterday following the larger than expect build in US inventories.

    • US Natgas DEC 22 up 3.6% at 6.19$/mmbtu
  • EIA data showed a stock build of +107bcf compared to a 5-year average of a +64bcf build at this time of year. Total inventories are now at 3,501bcf and just 3.4%% below the five-year average level having been as much as 12% below in mid August.
  • Deliveries to US LNG export terminals continues to edge lower with reducing supplies to Sabine Pass and no sign yet of any flows to Freeport LNG. Estimates show flows of 11.13bcf/d today.
  • Dry gas production remains stable with yesterday showing approximately 100.8bcf/d while current demand remains below normal at around 67bcf/d. The weather forecast is forecasting near normal or below normal temperatures gradually creeping into much of the US towards the middle of November.

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