Field production decreased marginally during the report week ended Aug. 30 by 0.12 billion cubic feet per day (Bcf/d) or 0.84 Bcf. Gas demand from the major categories fell by almost 4.76 Bcf/d for the report week, compared to the previous week. Imports from Canada dropped by 0.56 Bcf/d or 3.92 Bcf while exports to Mexico rose by 0.1 Bcf/d or 0.7 Bcf week-on-week.

Our analysis leads us to expect 84 Bcf storage build would be reported by the EIA for the report week, in comparison to the current 76 Bcf consensus whisper expectation and 11 Bcf higher than the five-year average storage build of 73 Bcf. Based on this week’s reported data, we think overall low supply should support Henry Hub prices; however, potential demand destruction on the East Coast as a result of Hurricane Dorian will likely hold in prices under $2.40 this week.

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