Daily Market Report – August 2, 2022

Today’s Fundamentals

Daily US natural gas production is estimated to be  96.5 Bcf/d this morning. Today’s estimated production is -0.5 Bcf/d to yesterday, and -1.26 Bcf/d to the 7D average. We saw a big revision in yesterday’s production estimate and expect to see a similar move in today’s estimate. There is still the possibility that yesterday’s number changes; hence we will wait til tomorrow to give a better understanding of ongoing production levels.

Natural gas consumption is modelled to be 82.9 Bcf today,  -0.41 Bcf/d to yesterday, and +1.28 Bcf/d to the 7D average. US power burns are expected to be 43.2 Bcf today, and US ResComm usage is expected to be 8.3 Bcf. Power burns peaked on July 21^st at 48.8 Bcf/d. Less extreme heat + strong wind has brought the level of burns much lower.

Net LNG deliveries are expected to be 11.2 Bcf today. Sabine has recovered to receiving 4.45 Bcf/d from the mid-3s last week.

Mexican exports are expected to be 5.4 Bcf today, and net Canadian imports are expected to be 5.7 Bcf today.

For week ending July 29th, the S/D storage model is point to a +32 Bcf injection and flow model is point to a +42 Bcf .

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