US Natgas Supported by Cold US Forecast and Higher LNG Deliveries

US Natgas holding steady with cold weather forecasts and higher LNG export deliveries with a smaller than expected EIA stock draw yesterday.

• US Natgas JAN 23 up 0.5% at 5.99$/mmbtu
• The EIA weekly gas inventories for the week ending Dec 2 showed a -21bcf decline compared to expectation of a -30bcf draw and the 5-year average for this time of year of -28bcf. Total US inventories have dipped back below the five year average in recent weeks at 3,462bcf.
• The weather forecast shows cold weather across western areas in the 6-10 day period spreading across most of the country in the second week of the outlook. Current warmer weather is keeping domestic demand below seasonal normal levels at 83.3bcf/d.
• Lower 48 dry gas production is today estimated at 100.2bcf/d while deliveries to LNG export terminals are back up to 12.5bcf/d and flows to Mexico are 6.3bcf/d.