US Natgas Steadies Ahead of EIA Inventory Data

US Henry Hub is holding steady after falling from over 2.4$/mmbtu last week to a low of nearly 2.1$/mmbtu yesterday. Price have been pressured by the wider market sell off in recent days while supplies remain strong.

• US Natgas JUN 23 down -0.8% at 2.15$/mmbtu
• Above normal storage levels are adding to the downside pressure although weekly EIA data today is expected to show a below normal build due to recent above normal demand. The latest EIA weekly gas inventories for the week ending 28 Apr will be released this afternoon at 15:30GMT. The expectation is for a smaller than normal build of +52bcf compared to the 5-year average for this time of year of +69bcf.
• Natural gas production was yesterday down slightly to 100.6bcf/d according to Bloomberg but remains well above levels seen in recent years. Output averaged just under 101bcf/d in April.
• The US weather forecast shows cold in the west coast region joining most of the US with slightly above normal temperatures in the 8-14 day period. Domestic demand is today still above normal at 68.9bcf/d compared to the seasonal normal of around 63bcf/d.
• Deliveries to US LNG export terminals are estimated at 13.4bcf/d according to Bloomberg, in line with the average flows of the last week but down from an average of 14.02bcf/d in April.
• Exports to Mexico are today relatively unchanged at around 5.6bcf/d.