NATGAS: Natural Gas End of Day Summary: Henry Hub Down on Week
Henry Hub is ending the day trading lower although has been volatile approaching US close. Front month briefly spiked into gains before immediately reversing. The moves did not have any obvious headline drivers.
- US Natgas AUG 24 down 0.7% at 2.03$/mmbtu
- US Natgas JAN 25 up 0.6% at 3.49$/mmbtu
- The US gas rig count was down 2 on the week at 101 rigs, according to Baker Hughes.
- US LNG export terminal feedgas flows are revised down today at 12.89bcf/d according to Bloomberg with Freeport LNG supply stable at 1.56bcf/d, compared to normal levels around 2 bcf/d.
- US domestic natural gas production was lower yesterday at 102.2bcf/d, compared to the 20-day average of 102.3 bcf/d.
- Domestic lower 48 natural gas demand edged down to 75.99bcf/d today according to Bloomberg.
- Kpler data shows that Egypt’s EGAS received five LNG cargoes this month, with the sixth arriving this weekend on the Hellas Athina.
- Australia Ichthys LNG export plant is looking to restart its offline train as soon as today, traders told Bloomberg.
- Russia's natural gas output rose by 8.3% y/y in H1 to 357.3 bcm, Kommersant said.
- LNG vessel Castillo de Santisteban from Peru diverted this week in the Atlantic towards the Netherlands. ICIS said.
- Everest Energy is the second LNG carrier to sail north through Red Sea after carriers stopped crossing earlier this year amid Houthi attacks.
- Japan’s JERA said July 26 that it will start a unit of a new 2.34 GW gas-fired power station near Tokyo on Aug. 1.
- East Med LNG prices hit a near two-month high premium over West Med July 25 as the former competes for cargoes during heat waves in the latter, Platts said.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OPTIONS: US Options Summary
Wednesday's US rates/bond options flow included:
- TY 111.00p, bought for 38, 39 and 40 in 15k total.
- SFRH5 95.50/96.00/96.50c fly, bought for 6 in 1k
- SFRN4 94.81/94.68ps 1x2, traded for 1.75 in 5k
- SFRQ4 94.81/94.93cs 1x2, traded for 2 in 5k
- SFRU5 95.75/95.25ps 1x2, sold the 2 at 3.5 in 10k (was also sold Yesterday at 3.5 in 10k)
- SFRX4 95.00/94.87/94.75p fly, bought for 2.25 in 10k
- 0QN4 95.81/95.68ps, traded for 4.5 in 2.5k
- 0QZ4 96.25/96.75cs vs 2QZ4 96.37/96.75cs traded half in 2k
US: House Financial Services Committee To Meet Shortly On Fed Stress Testing
The Republican-controlled House Financial Services Committee subcommittee on Financial Institutions and Monetary Policy is due to meet shortly to consider the bill, H.R.8591 – “To amend the Federal Reserve Act to add requirements to the annual report of the Board of Governors of the Federal Reserve System, and for other purposes.” LIVESTREAM
- The committee will hear testimony from Sean Campbell, Chief Economist at Financial Services Forum, Francisco Covas, Executive Vice President at the Bank Policy Institute, Jonathan Gould at Jones Day and Greg Feldberg, Research Director at the Yale School of Management.
- The hearing memorandum notes: “…the Dodd Frank Act requires the Federal Reserve to conduct stress tests of certain bank holding companies to determine whether they have “the capital, on a total consolidated basis, necessary to absorb losses as a result of adverse economic conditions.”
- “The hearing will examine stress testing and scenario analysis, including whether the Federal Reserve should decouple stress tests from capital requirements.”
- The hearing comes shortly before the Federal Reserve announces results from its annual bank stress tests at 16:30 ET 21:30 BST.
- The Fed notes: “This year, 32 banks with $100 billion or more in total assets are subject to the Board's stress tests. The scenario includes a severe global recession with heightened stress in commercial and residential real estate markets. Separately, the exploratory analysis includes four separate hypothetical elements, including two funding stresses applied to all banks tested and two market shocks applied to only the largest and most complex banks.”
EURGBP TECHS: Bearish Trend Structure
- RES 4: 0.8541 High May 31
- RES 3: 0.8531 1.0% 10-dma envelope
- RES 2: 0.8507 50-day EMA
- RES 1: 0.8471/78 20-day EMA / High Jun 24
- PRICE: 0.8459 @ 16:13 BST Jun 26
- SUP 1: 0.8397 Low Jun 14
- SUP 2: 0.8388 Low Aug 17 2022
- SUP 3: 0.8366 2.236 proj of the Apr 23 - 30 - May 9 price swing
- SUP 4: 0.8340 Low Aug 2 2022
Recent gains in EURGBP appear to be a correction and a bearish theme remains intact. The latest move down, reinforces the bear cycle and has maintained the price sequence of lower lows and lower highs. Note too that moving average studies are in a bear mode position, highlighting a clear downtrend. Scope is seen for a move towards 0.8366 next, a Fibonacci projection. Resistance is at 0.8471, the 20-day EMA.
