US Natgas Resumes Move Lower After Gains Yesterday on Storage Draw

Henry Hub is drifting back down to resume the bearish trend amid strong supply and muted demand after gains yesterday driven by a larger than expected EIA storage withdrawal last week.

• US Natgas JAN 24 down -0.4% at 2.58$/mmbtu
• US Natgas JUN 24 down -1.7% at 2.56$/mmbtu
• US Natgas DEC 24 down -1.3% at 3.61$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 1 showed a larger than expected draw of -117bcf compared to the seasonal normal draw of -33bcf. The total US inventories however remain well above season normal levels at 3,719bcf compared to the average of 3,509bcf.
• Lower 48 natural gas demand is today estimated down below normal to 83.8bcf/d according to Bloomberg driven by warm weather across much of the US. Temperatures are forecast to remain mostly above normal in the coming two weeks but with closer to normal expected in the south and a trend back towards normal late in the period.
• Domestic natural gas production is today estimated back up slightly to 105.2bcf/d according to Bloomberg but is still below the record level of 106.5bcf/d seen at the end of Nov.
• Feedgas flows to US LNG export terminals are relatively steady at 14.5bcf/d according to Bloomberg compared to a range between 12.7bcf/d and 14.9bcf/d since the start of November.
• Export flows to Mexico are today at 6.42bcf/d according to Bloomberg.