NATGAS: Natural Gas End of Day Summary: Henry Hub Strengthens
May-15 18:22
Henry Hub has been choppy but is ending the day trading higher. Concern for US production and the return of Freeport LNG are supporting a bullish trend.
- US Natgas JUN 24 up 2.8% at 2.41$/mmbtu
- US Natgas NOV 24 up 1.5% at 3.07$/mmbtu
- US terminal feedgas flows are almost unchanged on the day at 12.38bcf/d according to Bloomberg.
- LNG Tankers began loading at Freeport LNG in Texas, as full operations resume, according to Pipeline & Gas, citing Reuters.
- US domestic natural gas production was yesterday down slightly to 99.5bcf/d according to Bloomberg driven primarily by a drop in supply from the Permian basin.
- Lower 48 natural gas demand is holding above normal at 65.1bcf/d today according to Bloomberg.
- The latest 6–14-day NOAA forecast is relatively unchanged with above normal temperatures expected in the south and eastern areas but below normal in the north and west coast.
- US natural gas inventories rose by 79 Bcf in the week to May 10, according to a WSJ survey.
- US natural gas producers’ commitment to slow drilling activity in response to low gas prices is hitting hard in Haynesville this spring, dampening the outlook for summer production growth: Platts.
- LNG stockpiles held by Japanese utilities increased 6.47% w/w to 2.14m tons in the week to May 12.
- Qatar is going to sign more long-term LNG contracts this year according to its CEO Wednesday.
- PetroChina expects China's LNG import capacity to grow to 250 million metric tons per annum by 2027-28 according to an official on Wednesday.
- Five Chinese importers, mostly second-tier buyers, are each seeking June-Sep LNG cargoes: Argus.
- MNI COMMODITY WEEKLY: – See link: https://enews.marketnews.com/ct/x/pjJscQnaxrkI6a8zdU8nTw~k1zZ8KXr-kA8x6nOCMfxptIPjO1OcQ
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PIPELINE: $4.25B Wells Fargo 2Pt Debt Issuance Launched
Apr-15 18:05
- Date $MM Issuer (Priced *, Launch #)
- 4/15 $4.25B #Wells Fargo $3.25B 4NC3 +95, $1B 4NC3 SOFR+107
- 4/15 $Benchmark JP Morgan 4NC3 +80, 4NC3 SOFR, 6NC5 +95, 11NC10 +115
- 4/15 $Benchmark Eversource Energy 7Y +140a, 10Y +150a
- 4/15 $Benchmark EDF (Electricite de France) 5Y +105, 10Y +135, 40Y +185
EURGBP TECHS: Watching Support
Apr-15 18:00
- RES 4: 0.8678 38.2% retracement of the Feb 3 - Aug 23 bear cycle
- RES 3: 0.8620 High Jan 20
- RES 2: 0.8607 23.6% retracement of the Feb 3 - Aug 23 bear cycle
- RES 1: 0.8586/8602 High Apr 05 / High Mar 22 and key resistance
- PRICE: 0.8537 @ 16:27 BST Apr 15
- SUP 1: 0.8528/8504 Low Apr 12 / Low Mar 8
- SUP 2: 0.8498/93 Low Feb 14 / Low Aug 23 2023 and key support
- SUP 3: 0.8454 76.4% of the Mar 7 - Sep 26 ‘23 bull phase
- SUP 4: 0.8388 Low Aug 17 2023
EURGBP traded lower last week and the cross remains within this year’s broad range. A resumption of gains would refocus attention on key resistance at 0.8602, the Mar 22 high. Clearance of this hurdle would confirm a resumption of the recovery that started Feb 14 and open 0.8678, a Fibonacci retracement point. Support to watch is 0.8528, the Apr 12 low. A clear break would expose key support at 0.8498/93, the Feb 14 and Aug 23 2023 low.
UK DATA: MNI UK Inflation and Labour Preview - April 2024 Release
Apr-15 17:51
- It’s another key week for UK data, with the highlights being labour market data due for release on Tuesday and inflation data due Wednesday.
- Looking at the biggest single risks to both – Easter effects (particularly airfares) could boost inflation, while wage data could be higher-than-expected if there are more companies looking to pre-empt the National Living Wage (NLW) increases that are due to come in in April.
- However, if either of these appear to be the drivers of upside surprises, although we may get a temporary spike in markets, we think the MPC would generally look through these.
- Conversely, if we were to see downside surprises to either wage or services inflation data, the drivers are more likely to be more broad based.
- The MNI Markets team thinks that the market is underpricing MPC cuts this year at the time of writing.
