NATGAS: Natural Gas End of Day Summary: Henry Hub Under Pressure
Aug-08 18:26
Henry Hub is under pressure from near record production and curtailed LNG feedgas despite a warm weather forecast. Front month is down around 3% on the week,
- US Natgas SEP 25 down 2.3% at 3$/mmbtu
- US Natgas OCT 25 down 2.4% at 3.09$/mmbtu
- Baker Hughes US rig count: Gas: 123 (-1) - up 25 rigs, or 25.5% on the year.
- Lower 48 natural gas demand is estimated 331 mmf/d higher today at 79.15 bcf/d compared to the previous five-year average around 73 bcf/d, Bloomberg shows.
- Average Lower 48 temperatures are forecast to rise above normal in the coming days and remain above throughout the two-week outlook. The GFS 6z 15day is 2 CDDs lower nationally.
- US domestic natural gas production remains near record highs despite a 479 mmcf/d drop today to 109.2 bcf/d, according to BNEF.
- US LNG feedgas is today estimated down at 15.53bcf/d after rising to 16.34bcf/d on Aug. 6 and just below record levels seen in April, Bloomberg shows. Recent dips in supply to Corpus Chirti LNG are set against the continuing rise in Plaquemines feedgas up to around 3.05bcf/d over the last week.
- Another US LNG tanker has diverted away from Europe following several diversions in late July, including toward Egypt, South America and Asia.
- Egypt’s natural gas supply agreement for 130 Bcm over 15 years with partners in Israel’s Leviathan field, could be transformative, offering both significant volumes and long-term stability, Platts said.
- On 7 August, Nigerian energy producer Renaissance announced it had resumed delivering its full contracted gas volumes to the Bonny LNG plant for the first time in over five years, Platts said.
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A new survey from YouGov has found that 53% of Americans strongly or somewhat oppose the GOP’s Big Beautiful Bill, with 35% supporting it. YouGov notes: “Opposition to the budget has risen 10 percentage points since we first asked about it in April of this year.”
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Figure 1: “Thinking about the following U.S. program, do you believe it should be given more or less funding? (% who say each program should be given...)”
Source: YouGov
