The EIA reported a withdrawal of 130 Bcf from natural gas storage for the week ended Jan 1 – much steeper than the pull a year earlier but inline with market expectations. Nymex natural gas futures traded in a narrow range in the wake of the storage release.
This morning prompt month is trading lower with both model taking away some of the HDDs in the 6-10 day range. The market has been anticipating some cold to form in the back half of Jan, but this has not materialized in the rolling 15D forecast yet.
The current forecast is mainly at or below the 10Y normal for the next 15 days.
Today’s Fundamentals
Daily US natural gas production is estimated to be 90.9 Bcf/d this morning. Today’s estimated production is -0.9 Bcf/d to yesterday, and -0.72 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 104.9 Bcf today, +2.45 Bcf/d to yesterday, and +5.77 Bcf/d to the 7D average. US power burns are expected to be 30.24 Bcf today, and US ResComm usage is expected to be 44.6 Bcf.
Net LNG deliveries are expected to be 11.2 Bcf today.
Mexican exports are expected to be 6.7 Bcf today, and net Canadian imports are expected to be 6.2 Bcf today.
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-Jan-08-2021.pdf