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US Pulls Back After Tentative Deal to Stop Rail Strike

NATGAS

US Natgas losing gains from yesterday after US agreed to a tentative deal to avert a potential rail strike. US prices had rallied over 9% from around 8.35$/mmbtu yesterday morning up to a peak at 9.18$/mmbtu.

    • US Natgas OCT 22 down -5.2% at 8.64$/mmbtu
  • The latest EIA inventory data is due for release later today with a larger than normal build expected after recent high production and a dip in demand. Expectation is for a build of +73bcf compared to +54bcf last week and the 5-year average for this time of year of +53bcf.
  • US lower 48 dry gas demand is back near normal levels as hot weather has eased and forecast are expecting a more mixed outlook. Demand is today estimated at 64bcf/d down from over 71bcf/d at times last week.
  • Production has dipped slightly but is still strong at 99.7bcf/d while exports are steady with LNG at 11.8bcf/d and Mexico at 6.5bcf/d.

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