US Natgas Resumes Decline with Stable Supplies and Moderate Demand

US Natgas once again sets a new recent low with front month falling down to 2.311$/mmbtu earlier today and the lowest since the end of 2020.

• US Natgas MAR 23 down -2.4% at 2.33$/mmbtu
• The decline comes as production stays strong, demand below normal, storage holding above normal and uncertainty still surrounding the timing of the full Freeport LNG resumption.
• EIA weekly gas inventory data released yesterday showed another smaller than normal draw of -100bcf compared to the 5-year average for this time of year of -150bcf. Total US inventories are above the five year average at 2,266bcf.
• Natural gas production was yesterday steady at 100.6bcf/d while demand was slightly higher at 95.3bcf/d but still just below the five year average.
• Deliveries to US LNG export terminals are high at 13.37bcf/d today considering the ongoing Freeport outage. Freeport LNG is still progressing towards a restart with the export of partial cargoes from fuel tanks and feedstock flows holding around 0.47bcf/d.