Yesterday, Natural gas price exploded higher after remaining under $2/MMBtu since early May. The combination of warmer weather past the 1-5 days period (indicating that August could follow July’s heat trajectory), LNG jumping near 4 Bcf/d, and production dropping added to yesterday’s rally.
Prompt month continues to rise this morning with price currently at 2.15. A close above 2.16 would set the next resistance at the 2.25 level.
Isaias slammed into the East Coast overnight, causing rapid flooding, and the threat of New York’s strongest winds since Superstorm Sandy in 2012. Isaias sustained winds of 85 mph and became a Category 1 hurricane before reaching land late last night near Ocean Isle Beach, North Carolina. It has been downgraded to a tropical storm this morning, but the heavy rains and flooding are expected from North Carolina all the way to the Canada border over the next couple of days.
https://www.nhc.noaa.gov/refresh/graphics_at4+shtml/215355.shtml?inundation
Today’s Fundamentals:
Daily US natural gas production is estimated to be 84.6 Bcf/d this morning. Today’s estimated production is -1.24 Bcf/d to yesterday, and -1.21 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 72.9 Bcf today, -2.78 Bcf/d to yesterday, and -3.09 Bcf/d to the 7D average. US power burns are expected to be 40.24 Bcf today, and US ResComm usage is expected to be 7.9 Bcf.
Net LNG deliveries are expected to be 4 Bcf today
Mexican exports are expected to be 6.2 Bcf today, and net Canadian imports are expected to be 4.8 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
This email, any information contained herein and any files transmitted with it (collectively, the Material) are the sole property of OTC Global Holdings LP and its affiliates (OTCGH); are confidential, may be legally privileged and are intended solely for the use of the individual or entity to whom they are addressed. Unauthorized disclosure, copying or distribution of the Material, is strictly prohibited and the recipient shall not redistribute the Material in any form to a third party. Please notify the sender immediately by email if you have received this email by mistake, delete this email from your system and destroy any hard copies. OTCGH waives no privilege or confidentiality due to any mistaken transmission of this email.
ION-Energy-Daily-Report-Aug-4-2020.pdf