NATGAS: Henry Hub Erases Earlier Gains
Apr-03 17:00By: Lawrence Toye
Henry Hub has reversed earlier gains on the day to be trading lower, with pressure from expectations of falling heating demand and already high stock levels.
- US Natgas MAY 24 down 0.5% at 1.85$/mmbtu
- US domestic natural gas production was lower again yesterday at 99.2bcf/d having fallen from just over 101bcf/d on March 31.
- Feedgas flow to US LNG export terminals are today estimated up to 12.73bcf/d after falling to a recent low of 11.36bcf/d yesterday according to Bloomberg. The increase is driven by a recovery in both Sabine Pass and Corpus Christi flows.
- Lower 48 natural gas demand is still above normal with today estimated at 80.9bcf/d according to Bloomberg.
- The US forecast shows as generally warming trend which will help to limit heating demand.
- Export flows to Mexico continue to recover up to 5.9bcf/d today after falling below 5bcf/d late last week according to Bloomberg.
