US Henry Hub is trading lower after a volatile day yesterday saw front month bouncing between 2.18$/mmbtu and 2.29$/mmbtu. Uncertainty over future US energy demand and strong production levels and healthy storage are offseting the steady LNG export flows.

• US Natgas JUN 23 down -1.8% at 2.23$/mmbtu
• The EIA STEO report yesterday expects the Henry Hub price to recover over the summer to around 3$/mmbtu in July and August driven by higher US natural gas consumption used for electricity generation.
• Total deliveries to US LNG export terminals are still limited slightly compared to April levels. Feedgas supplies were yesterday estimated at 12.86bcf/d according to Bloomberg although flows to Corpus Christi have recovered from the dip at the start of the week.
• Natural gas production was yesterday slightly down to 100.1bcf/d compared to an average of 101.2bcf/d so far this month.
• Domestic demand is again holding near normal with today estimated just slightly lower at 63.9bcf/d. The US two week weather outlook is largely unchanged from yesterday with above normal temperatures expected in western areas and the far east coast but below normal forecast in central regions.
• Export flows to Mexico are estimated up at the top of the five year range at 6.3bcf/d today.