US NATGAS: Henry Hub Drifts Lower on High Production but Cold Weather Risk

Henry Hub front month drifts lower with record production weighing on prices despite the forecast for cold weather across much of the US next week.

• Lower 48 natural gas demand has risen again on the day and back above normal at 101.1bcf/d today, according to Bloomberg. Average Lower 48 temperatures are forecast to fall below normal into next week. NOAA 6-14 day forecast shows below normal across most of the US except for the Gulf Coast and Lower Atlantic regions.
• US domestic natural gas production is again near record highs at 107.0bcf/d today, Bloomberg shows, and in line with the average seen over the previous week.
• US LNG export terminal feedgas rebounded to 14.73bcf/d today driven by a recovery in supply to Sabine Pass although still below start of month levels.
• Export flows to Mexico are recovering back to 6.33bcf/d today after a dip lower at the start of this week, according to Bloomberg.
• Nymex Henry Hub daily aggregate traded futures was back down to 494k on Feb. 4.
  • US Natgas MAR 25 down 1.6% at 3.2$/mmbtu
  • US Natgas APR 25 down 1.6% at 3.21$/mmbtu
  • US Natgas FEB 26 down 0.5% at 4.33$/mmbtu