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US Natgas Swings on LNG, Hot Weather and EIA data

NATGAS

After a volatile day yesterday, US Natgas is falling back again today. Currently down 2.0% to 8.78$/mmbtu.

  • Prices initially fell from a high of 9.6$/mmbtu on Wednesday to a low of 8.08$/mmbtu yesterday after a fire at the Freeport LNG export terminal. The market then rebounded after a below normal rise in EIA weekly gas inventories to take prices back above 9$/mmbtu.
  • Hot weather in the southern US continues to drive stronger than normal power generation demand with increased air conditioning requirements.
  • Dry gas production is at 96.1bcf and demand is up to 66.3bcf compared to the last week average of 62.2bcf/d. Gas flows to LNG export terminals is down about 2bcf as expected to 10.9bcf.

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