Dry gas production fell by 0.44 billion cubic feet per day (Bcf/d) this report week to average at 92.09 Bcf/d. This marks the second consecutive week that production has fallen. Cool temperatures across the country saw demand from the power generation sector fall from 37.73 Bcf/d to 35.11 Bcf/d in the report week vs. the prior report week. Dry gas imports from Canada dropped by 0.13 Bcf/d to average 4.67 Bcf/d, while dry gas exports to Mexico slightly declined from 5.31 Bcf/d to 5.30 Bcf/d for the report week.

Our storage analysis leads us to expect a 99 Bcf build for the report week of Sept. 20. Our expectation is above the current 88 Bcf consensus whisper and 25 Bcf higher than the five-year average of 74 Bcf.

Our overall view for the week is to see a negative movement in Henry Hub prices. We anticipate Henry Hub prices will likely trade this week within +/- 5 cents of the Sept. 23 $2.60/MMBtu closing price.

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