US Natgas Reverses Gains

US front month Henry Hub has reversed earlier gains and dipped lower as high domestic demand and US LNG exports are weighed against a downward revision in near-term temperatures, weighing on cooling demand.

• US Natgas SEP 23 down -0.6% at 2.62$/mmbtu
• Henry Hub front month traded as high as $2.693/mmbtu before drifting lower.
• Feedgas to the US LNG export terminals have risen to 12.85bcf/d, compared with the 30-day moving average of 12.68bcf/d. Flows to Cove Point LNG have recovered after an explosion on 25 July shut down part of the Columbia transmission pipeline.
• Domestic natural gas consumption stood at 77.7bcf/d, slightly down from peaks last week but demand remains above the five-year average range.
• The US weather forecast for the 6-10 day period has been significantly revised down, with temperatures near normal or below normal throughout the Mid-West, East Coast and partly North West of the US, while temperatures in throughout the southern states and West Coast remain above the seasonal average. US production was yesterday at 101.365bcf/d in line with the July average so far, after dipping slightly lower on July 25.
• Export flows to Mexico stood at 6.6bcf/d, below last week’s levels.