The EIA reported a withdrawal of 134 Bcf from natural gas storage for the week ended Jan 8. The number exceeded both the year-earlier pull and the analysts’ estimates.
Ahead of the EIA report, the February contract was up 2.6 cents at $2.753/MMBtu amid anticipation of a steep pull. The prompt month jumped to around $2.775 when the data was released; however, closed the day lower at 2.66.
This morning prices are higher with cool temps once again popping up in Midwest/Southeast/South Central. The models are in general agreement with both showing overall cooler weather past Jan 23rd.
Today’s Fundamentals
Daily US natural gas production is estimated to be 89.6 Bcf/d this morning. Today’s estimated production is -0.71 Bcf/d to yesterday, and -0.8 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 95.6 Bcf today, +0.48 Bcf/d to yesterday, and -10.09 Bcf/d to the 7D average. US power burns are expected to be 27.54 Bcf today, and US ResComm usage is expected to be 37.7 Bcf.
Net LNG deliveries are expected to be 11 Bcf today.
Mexican exports are expected to be 6.2 Bcf today, and net Canadian imports are expected to be 5.5 Bcf today.
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ION-Energy-Daily-Report-Jan-15-2021.pdf