US NATGAS: Henry Hub Midday Update

Henry Hub front month tests $3.00 on the back of a lower-than-expected storage report of 18 bcf

• Oct 25 is trading at $2.976, up 3.12% on the day.
• Nov 25 is trading at $3.286, up 2.27% on the day.
• The intraday high was $2.988 today after the EIA showed an 18 bcf injection for the week ending August 22. The build missed analyst’s expectations by 8 (+26) for Reuters, WSJ by 10 (+28), BBG by 9 (+27), NGI by 9 (+27).
• The five-year seasonal average is 38 bcf, while last year socks built by 35 bcf.
• Total stocks are up to 3,217 bcf. This is 112 bcf below levels seen a year ago and 154 above the previous five-year average of 3,063 bcf.
• The NOAA 6-10 day temperature outlook shows a revision of below-normal temps in the eastern two-thirds of the US, while the West Coast feels the heat.
• The NHC reported a new tropical disturbance forming in the Atlantic off the coast of West Africa that has a 20% chance of forming into a cyclone in the next seven days.
• BNEF estimates lower 48 dry gas production at 107.15 Bcf/d, down from the previous day of 108.23 Bcf/d.
• U.S. dry gas consumption is estimated at 72.47 Bcf/d, up from the previous day of 71.32 Bcf/d.
• LNG net flows from the US totaled 15.44 Bcf/d, up from the previous day of 15.09 Bcf/d.
• Pipeline exports to Mexico were estimated at 7.52 Bcf/d, down from the previous day of 7.76 Bcf/d.