Daily Market Report – Jan 07, 2022

Jan 7, 2022

The EIA reported a -31 Bcf withdrawal for the week ending Dec 31th, which came in much lower than analyst estimates. Most major vendors and surveys were calling for a larger draw.

There was a lot of noise in the period ending Dec 31st – hence the market shook off this ultra bearish report. Not only was this a fully holiday week sandwiched between xmas eve and new years eve, but it was a week where we had unreasonable warm weather across move of the highly populated parts of the country and record higher production days.

This is how weather looked last week vs normal:


Today’s Fundamentals

Daily US natural gas production is estimated to be  92.5 Bcf/d this morning. Today’s estimated production is +0.28 Bcf/d to yesterday, and -0.8 Bcf/d to the 7D average. We expect production to rebound by next week as temps return to more normal levels.

Natural gas consumption is modelled to be 118.3 Bcf today,  +0.96 Bcf/d to yesterday, and +8.5 Bcf/d to the 7D average. US power burns are expected to be 30.7 Bcf today, and US ResComm usage is expected to be 54.4 Bcf.

Net LNG deliveries are expected to be 12.2 Bcf today.

Mexican exports are expected to be 6.4 Bcf today, and net Canadian imports are expected to be 6.3 Bcf today.

The storage outlook for the upcoming report is -172 Bcf today.

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