North America gas weekly update: Record late-fall storage injections

Although record daily US gas production is taking a breather, record late-fall storage injections are occurring. Weekly US gas production has still settled in at a record high near 99 bcfd. Coupled with milder temperatures and LNG outages, market balances have loosened significantly and will contribute to five consecutive triple-digit storage injections once the next two EIA weekly storage reports are tallied. With the added storage cushion prior to the start of winter, prompt Henry Hub gas prices have slipped as low as support at last winter’s $6.30/MMBtu high. For now, colder temperature forecasts for mid-October are staving off a further price collapse. However, if the cold cannot persist, yet another triple-digit injection may be in store this fall. Near-term, the North America gas market is asking: • When will higher heating loads start to materialize? • Will daily US gas production regain triple-digit levels? • How far into November will storage injections persist?