NATGAS: Natural Gas End of Day Summary: Henry Hub Lowest Since Nov. 20
Dec-03 19:27
Henry Hub is furthering its recent pull back, with front month at its lowest level since Nov. 20. The softer tone comes as demand is expected to ease with the arrival of warmer weather across the US next week. Meanwhile production remains strong.
- US Natgas JAN 25 down 5.4% at 3.04$/mmbtu
- US Natgas JUN 25 down 3.6% at 2.99$/mmbtu
- Lower 48 natural gas demand remains high at 106.3bcf/d today, according to Bloomberg.
- The lower 48 weather forecast has turned milder in recent days with NOAA showing cold on the East Coast giving way to warmer weather as above normal temperatures spread across the US during the second week of December.
- US domestic natural gas production was at 104.7bcf/d yesterday, Bloomberg said.
- US LNG export terminal feedgas supply is down to 13.37bcf/d today, BNEF shows.
- Power supplying the Freeport LNG facility in Texas began dropping Dec. 3, according to Bloomberg.
- The US export permitting pause will likely keep global LNG prices higher for longer, and benefit existing exporters, Jason Feer at Poten & Partners said.
- Three LNG cargoes on course for Europe have diverted back to Asia as colder weather spurs higher demand to head East.
- The quantity of LNG on tankers that have not unloaded for at least 20 days fell 0.7% on the week to 4.75m mt Dec. 1, Bloomberg said.
- Argentina plans to launch an auction "as soon as possible" for a project to boost natural gas takeaway capacity from the Vaca Muerta shale play, Platts said.
- A plan to export LNG from Argentina is gaining momentum, with four drillers in the Vaca Muerta shale patch now signed on to supply the facility with gas.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US: Biden Remarks In Philadelphia Underway Shortly
Nov-01 20:31
US President Joe Biden is shortly due to deliver remarks in Philadelphia, Pennsylvania on his administration's "historic support for unions". LIVESTREAM
- The speech is a rare forray for Biden into presidential election swing states, with the Harris campaign reportedly preferring to keep distance from the President. A speech in critcal Pennylvania, and another event planned for Saturday, may suggest that Harris has calculated that Biden's appearance may help shore up some blue-collar votes in a state the president retains high levels of support.
- However, considering a recent gaff, Biden's comments will be closely scrutinsed by the press and Republican operatives for any remarks that can be used in last-minute campaign material.
- CNN noted: "More broadly, a Biden comment that will be portrayed by pro-Trump media as contempt for the ex-president’s supporters came at exactly the moment that Harris is trying to come across as a unifying figure to win over Republicans who are disaffected with Trump’s extremism but are not yet ready to take the leap to vote for a Democrat."
- The Washington Examiner notes, in an article summarising the various problems Biden has caused Harris: "The president, now entering his final few months in the White House, may have more trouble with the errant comments. The Associated Press reported Thursday that the White House press office altered the stenographed transcript in a bid to clean up what Biden had said."
US TSY OPTIONS: BLOCK: Large Dec'24 5Y Call Spread
Nov-01 19:59
- 28,591 FVZ4 107.5/109.5 call spreads, 22 vs. 106-30.5/0.30% at 1551:32ET
US TSYS: Late Treasury Roundup: Ignoring Jobs Data, Yields Climb Ahead Election
Nov-01 19:34
- Curves maintained steeper profiles late Friday, despite Treasury futures gradually reversing this morning's post NFP-tied bid. Fast two-way trade reported as Treasury futures briefly extended lows than rebound gap higher after the latest employment report shows much lower than expected jobs gain and down revision to prior, unemployment rate in-line with expectations.
- Support evaporated after higher than expected S&P Global US Manufacturing PMI, Construction Spending and ISM prices paid data. After the bell, the Dec'24 10Y contract trades through round number support to 109-31.5 (-15.5) while curves hold steeper levels -- reflecting improved rate cut expectations on the day: 2s10s +4.592 at 15.594 (vs. 7.660 low), 5s30s +3.035 at 34.538 (vs. 28.331 low). After
- Projected rate cuts into early 2025 held firmer vs. late Thursday levels (*): Nov'24 cumulative at -24.6bp ( -23.5bp), Dec'24 -45.9bp (-42.8bp), Jan'25 -59.2bp (-58.1bp), Mar'25 -74.8bp (-75.0bp).
- Greenback initially weakened across the board after the lower-than-expected headline, but the murky details around industrial action and hurricanes likely containing the market fallout here. The USD reversed course throughout the session, terminal rates in the US stronger climbs on the week which contributed to the strong dollar reversal on Friday, with the USD index looking to close the week broadly unchanged around 104.25.
- Looking ahead, the US Presidential Election on Tuesday and the FOMC decision unusually on a Thursday are two major risk events in an otherwise light US calendar.
Related bullets
Related by topic
Energy Data
US Natgas
TTF ICE
Asia LNG
Gas Positioning
