NATGAS: Henry Hub Moves to Rangebound

Henry Hub has reversed previous losses to move into gains on the day, although is still trading down around 7.5% on the week. The recovery is Freeport has been supportive.

• US Natgas FEB 25 up 0.5% at 3.96$/mmbtu
• US Natgas MAR 25 down 1.2% at 3.42$/mmbtu
• The EIA weekly gas inventories to Jan. 17 showed a slightly below expectation but well above-average withdrawal of 223 bcf. Total stocks are down to 57bcf below levels seen a year ago and just 21bcf above the previous five-year average
• Lower 48 natural gas demand has fallen further to 121.2bcf/d today, according to Bloomberg from a peak of 141.5bcf/d on Jan. 21. US temperatures are forecast to gradually rise into early next week. NOAA shows near or slightly above normal temperatures, except for the far north, in the 8–14-day period.
• US domestic natural gas production has rebounded to 103.2bcf/d today, according to Bloomberg.
• US LNG export terminal feedgas is showing at 13.3bcf/d today compared to a low of 9.2bcf/d yesterday, according to Bloomberg but still well below the record high of 15.1bcf/d on Jan. 17.
• Freeport LNG terminal feedgas is showing a partial recovery to 1.34bcf/d today following the winter storm power problem which halted operations earlier this week.
• Export flows to Mexico are 6.30bcf/d today, according to Bloomberg, compared to an average of 6.2bcf/d over the previous week.