US Pulls Back After Cold Weather Driven Rally

The front month US Natgas price pulls back after rallying strongly on a change to cold weather in the two week forecast.

• US Natgas DEC 22 down -5.9% at 6.53$/mmbtu
• Warm weather on the east coast has helped maintain demand at or below normal for the past couple of weeks but the change to cold temperatures will increase domestic demand. Current lower 48 dry gas demand is still below normal estimated at 74.2bcf/d today.
• Natural gas deliveries to LNG export terminals are holding steady at around 11.8bcf/d with no signs on a return of Freeport LNG to operation yet. Last week Freeport filed a “Root Cause Failure Analysis” as required by federal regulators but hadn’t yet filed a restart plan. It is still hoped that Freeport LNG will resume operation during November.
• US natural gas production is relatively unchanged at around 99.5bcf/d while export to Mexico are back up to 6.5bcf/d after dipping below 6bcf/d over recent days.