NATGAS: Natural Gas End of Day Summary: Henry Hub Pulls Back

Henry Hub has pulled back to its lowest level since Feb. 18 amid March 25 contract expiry today with lower demand offsetting support from ongoing strong LNG export demand.

• US Natgas MAR 25 down 7.4% at 3.86$/mmbtu
• US Natgas APR 25 down 4.2% at 3.96$/mmbtu
• US Natgas Storage Change:-266 bcf (EIA),  -265 bcf (WSJ), -266 (Reuters), -277 (NGI), 
• Lower 48 natural gas demand is down below five year seasonal average levels at 83.2bcf/d as temperatures have recovered from the cold last week. The current forecast shows temperatures drifting back below normal over the coming weekend before a recovery to drift either side of normal through the second week of the outlook.
• US domestic natural gas production continues to recover up to 106.56bcf/d today following the drop last week but remains below the highs of over 108bcf/d early in Feb.
• US LNG export terminal feedgas is steady at 15.62bcf/d today compared to an average of 15.51bcf/d over the previous week.
• Export flows to Mexico are estimated down from levels seen last week to 6.27bcf/d today, according to Bloomberg.
• The movement to soften the EU gas storage mandate is still bearish for TTF/JKM following recent sharp declines, according to Platts.
• The EU plans to relax its gas storage refilling targets for member states, the FT reports.
• Norway will provide the financing for Ukrainian gas purchases, Naftogaz said on Tuesday.
• LNG stockpiles held by Japanese utilities decreased 3.48% w/w on Feb. 23 to the lowest since Jan. 5 at 1.94m tons, according to data released by the trade ministry cited by Bloomberg.