The EIA reported a withdrawal of 128 Bcf from natural gas storage for the week ended Jan 8. The report was notably lighter than a week earlier and came in well below the mid-point of analysts’ estimates.
Analysts noted that it was warmer than normal during the covered week and liquefied natural gas (LNG) volumes were also lower because of heavy fog along the Gulf Coast that limited access to export facilities. LNG volumes have since recovered this week, holding above 11 Bcf/d on Thursday after dipping below 9 Bcf at one point last week, according to NGI data.
The current weather outlook is uncertain past Feb 4th with no real alignment between the most watched models. The GFS Ensemble is calling for cool weather while the Euro Ensemble is showing weather essentially flat to the 10Y normal.
Today’s Fundamentals
Daily US natural gas production is estimated to be 90.1 Bcf/d this morning. Today’s estimated production is -1.02 Bcf/d to yesterday, and -0.92 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 113.5 Bcf today, -4.5 Bcf/d to yesterday, and +4.08 Bcf/d to the 7D average. US power burns are expected to be 28.24 Bcf today, and US ResComm usage is expected to be 50.4 Bcf.
Net LNG deliveries are expected to be 10.4 Bcf today.
Mexican exports are expected to be 6.1 Bcf today, and net Canadian imports are expected to be 7.2 Bcf today.
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