NATGAS: Natural Gas End of Day Summary: Henry Hub Falls
Henry Hub is holding losses near the intraday low, with pressure from a 14% drop in feedgas flows to Sabine Pass.
- US Natgas JUL 25 down 2.2% at 3.45$/mmbtu
- US Natgas AUG 25 down 2.2% at 3.52$/mmbtu
- US gas rig count according to Baker Hughes: Gas: 99 (1) - up 1 rigs, or 1% on the year.
- Lower 48 natural gas demand is down 1.5 bcf/d on the day to 68.2 bcf/d but is above the 7-day average of 66.0 bcf/d, BNEF shows.
- The latest NOAA 6-14 forecast shows that temperatures in the east and Midwest have moved above normal, while Mountain and Pacific regions have shifted from below normal to normal.
- US domestic natural gas production is shown down at 105.9 bcf/d, the lowest since May 15 amid a sharp drop in flows to Sabine Pass due to train 3 going offline. The 7-day moving average is 106.5 bcf/d.
- Feedgas flows to LNG terminals are at 13.57 bcf/d today, down from 14.2 bcf/d yesterday and the lowest since May 6.
- Train 3 at the Sabine Pass LNG liquefaction terminal in Louisiana is offline, according to Bloomberg.
- EPNG has experienced an equipment failure associated with its Eunice C Compressor Station located in Lea County, New Mexico.
- China's LNG demand remains weak heading into summer - traditionally a peak consumption period - amid subdued downstream demand and ample alternatives, Platts said.
- European gas storage was 47.15% full on May 28, according to GIE, compared to the previous five-year average of 58.46%.
- NextDecade has signed a binding 20-year LNG supply deal with Japan’s JERA for 2m mtpa from the proposed fifth liquefaction train at its Rio Grande LNG project in Texas, Platts said.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
TARIFFS: US Contacting China Re Tariffs Via Multiple Channels, Per Report
MNI (NEW YORK) - Making the rounds now on Bloomberg is the headline "US Has Reached Out to China for Tariff Talks, CCTV Says". The report underlying the headline was out closer to an hour ago based on the timestamp in the Weibo account post in question which is affiliated with China official media. Unclear whether this has helped the risk-on bid in equities over the last 20 minutes.
- Per the social media post (Google-translated - link here): "the US has taken the initiative to contact China through multiple channels, hoping to negotiate with China on the issue of tariffs", with the author citing sources.
US: More Than 50% Of Americans Believe US Is On Wrong Track'
55.6% of Americans report that the US is on the "wrong track", a reversal of the positive response to the first two weeks of the Trump administration, according to data fro Decision Desk HQ.
- The trackers shows that the turnaround in sentiment appears to correlate with Trump's initial tariff announcements in the first week on February and then accelerated following the announcement of Trump's 'Liberation Day' tariffs on April 2.
- The return of sentiment to levels during the Biden administration is another warning sign for the Trump administration that US voters are sceptical of Trump's handling of the economy. The flagging public support of administration policy is likely to weigh heavily on Republican lawmakers ahead of crucial votes in Congress on Trump's expansive tax and spending agenda.
Figure 1: Right Track/Wrong Track
Source: DDHQ
EURGBP TECHS: Bear Cycle Extends
- RES 4: 0.8781 2.236 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8768 High Nov 20 ‘23
- RES 2: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 1: 0.8557 High Apr 28
- PRICE: 0.8500 @ 16:28 BST Apr 30
- SUP 1: 0.8482 Low April 30
- SUP 2: 0.8477/60 61.8% of the Mar 28 - Apr 11 rally / 50-day EMA
- SUP 3: 0.8415 76.4% retracement of the Mar 28 - Apr 11 rally
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP was sold off a mid-session rally, keeping the technical picture intact and highlighting a continuation of the current bear cycle. Sights are on 0.8477, a Fibonacci retracement point where a break would strengthen the bearish theme. Support at the 50-day EMA, is at 0.8460. It is still possible that the move down that started Apr 11, is a correction. A reversal and a resumption of gains would open 0.8738, the Apr 11 high and bull trigger.
