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Warmer Weather to Ease Demand Pressure on US Natgas

NATGAS

US Natgas continues to fall with warmer weather forecasts to ease demand pressure after the recent cold temperatures. The front month price has fallen nearly 20% from a peak at 6.96$/mmbtu on 15 Dec.

    • US Natgas JAN 23 down -4.8% at 5.57$/mmbtu
  • Temperatures in eastern areas are expected to shift from below normal in the 6-10 day period to above normal towards the end of the month in the 8-14 day period. Current domestic demand is down slightly from yesterday but still above normal at 102.3bcf/d.
  • Lower 48 dry gas production is steady at 100.2bcf/d yesterday while exports to Mexico are also largely unchanged at 6.3bcf/d.
  • Deliveries to US LNG export terminals are today estimated 12.01bcf/d. Tankers are heading towards the Freeport LNG terminal and pipeline flows have started according to Refinitiv data suggesting the potential for a restart of exports soon. Freeport is still targeting the safe initial restart around year end.

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