Field production held above 95 billion cubic feet per day (Bcf/d) for the report week ended Oct 25. Imports of natural gas from Canada fell by 0.20 Bcf/d or 1.4 Bcf. Exports of natural gas from Mexico also fell by 0.14 Bcf/d or 1.0 Bcf. Demand from major categories saw a gain of 0.70 Bcf/d week-on-week. Majority of this demand gain was from power generation and residential and commercial sectors.

Our analysis leads us to expect another strong injection of 87 Bcf would be reported by EIA for the report week. This is in comparison to the current 88 Bcf consensus whisper expectation and almost 45% higher than the five-year average storage build of 60 Bcf.

Natural gas prices have rebounded slightly to stay around $2.49/MMBtu as of early this week. We may see a small upside to the prices in short term contingent on arrival of cold weather conditions.

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