NATGAS: Natural Gas End of Day Summary: Henry Hub Surges on Week
Feb-21 19:58
Henry Hub front month has extended losses after regaining some lost ground during the European afternoon session. The market is taking stock after a recent surge, but remains sensitive to cold weather forecasts and record LNG feedgas.
- US Natgas MAR 25 up 4.4% at 4.34$/mmbtu
- US Natgas APR 25 up 3.3% at 4.22$/mmbtu
- EIA showed a larger than expected gas storage withdrawal of 196bcf compared to the seasonal five-year average of 145bcf.
- Lower 48 natural gas demand is down slightly today but still well above normal at 122.5bcf/d, Bloomberg said.
- Current cold temperatures in Lower 48 are expected to rise above normal over the weekend. The NOAA 8–14-day forecast shows a mixed forecast with above normal in western US but cooler in the east.
- US domestic natural gas production is still curtailed by cold weather at 102.0cf/d today, BNEF shows.
- US LNG export terminal feedgas has seen a steady rise this month, reaching a record high of 16.00bcf/d today, according to Bloomberg.
- Export flows to Mexico rose to the highest since October at 6.99bcf/d, according to Bloomberg.
- Natural Gas Pipeline Company of America reported a force majeure at its 343-compressor station in Liberty County, Texas.
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US TSY OPTIONS: BLOCK: Mar'25 10Y Calls
Jan-22 19:52
- 11,000 TYH5 113 calls 1 vs. 108-08.5/0.03% at 1445:11ET
COMMODITIES: Gold Extends Gains, Crude Edges Down
Jan-22 19:49
- Spot gold has risen by a further 0.4% to $2,756/oz on Wednesday, bringing the yellow metal to its highest level since October 31.
- The gains come as President Trump widened his tariff threats to include China and the EU, with talk of a 10% tariff being imposed on China.
- The clear break of key short-term resistance at $2,726.2, the Dec 12 high, this week strengthens a bullish theme and signals scope for an extension near-term. Sights are on $2,790.1, the Oct 31 all-time high.
- Meanwhile, WTI lost some ground on the day, with outages on the US gulf coast bearish for oil. However, it has struggled for clear direction, with earlier movement driven by Trump comments towards the war in Ukraine.
- WTI Mar 25 is down by 0.5% at $75.4/bbl.
- The prospect of 25% tariffs on imports from Canada starting February 1 is an upside risk to US fuel prices.
- The trend structure in WTI futures remains bullish despite the latest pullback, with attention on $79.48, the Apr 12 ‘24 high.
- Support to watch is the 20-day EMA, at $74.20.
- Henry Hub has surged today, supported by updated weather forecasts of colder temperatures ahead.
- US Natgas Feb 25 is up by 5.8% at $3.97/mmbtu.
US STOCKS: Late Equities Roundup: Holding Near Record Highs, Earnings Resume
Jan-22 19:37
- Stocks are drifting near midday highs late Wednesday semiconductor stocks helping SPX Eminis climb back near early December all-time highs (6178.75).
- Currently, the DJIA trades up 110.69 points (0.25%) at 44137.46, S&P E-Minis up 41.25 points (0.68%) at 6126, Nasdaq up 251.1 points (1.3%) at 20009.01.
- Information Technology and Communication Services sectors continued to outperform in the second half, chip stocks supporting the former as noted: Monolithic Power +8.53%, Nvidia +4.63%, Lam Research +3.66%, while Applied Materials gained 3.01%.
- Interactive media and entertainment stocks led gainers in the Communication Services sector: Netflix still up over 10% after some profit taking in the second half as subscriptions soar, Warner Bros +2.35%, Meta +1.77%.
- On the flipside, Utilities and Real Estate sectors continued to underperform in late trade, gas and multi-energy providers weighing on the former: Dominion Energy -4.54%, PG&E -3.01% while Edison International declined 3.63%.
- Investment trusts, particularly health care and industrial REITs weighed on the Real Estate sector: Ventas -2.95%, Healthpeak Properties -2.56% and Prologis -2.0%.
- Earnings expected to be announced after the close include: Steel Dynamics, Discover Financial Services, Hexcel Corp, Alcoa Corp, Knight-Swift Transportation and Kinder Morgan Inc.
