Daily Market Report – July 09, 2021

Yesterday the EIA posted a bullish storage report that showed only 16 Bcf being injected across the lower 48. This was much lower than market expectations, and the number was very much aligned with the +55 Bcf injection we saw a couple of weeks ago for week ending June 18^th.

The particular storage week included record heat in the Pacific Northwest, as well as hot weather on the East Coast. Meanwhile, after weeks of maintenance, LNG feedgas levels resumed back to 11 Bcf/d. Production also was lower in both the Northeast (Markwest NGL pipeline issue) and the South Central region. The South Central showed a withdrawal in both salt and nonsalt facilities, declining by a net 14 Bcf.

Today’s Fundamentals

Daily US natural gas production is estimated to be  90.9 Bcf/d this morning. Today’s estimated production is -0.97 Bcf/d to yesterday, and -0.23 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 72.7 Bcf today,  -1.21 Bcf/d to yesterday, and +0.74 Bcf/d to the 7D average. US power burns are expected to be 37.8 Bcf today, and US ResComm usage is expected to be 8.3 Bcf.

Net LNG deliveries are expected to be 10.8 Bcf today.

Mexican exports are expected to be 7.5 Bcf today, and net Canadian imports are expected to be 4.9 Bcf today.   

The storage outlook for the upcoming report is +50 Bcf today.

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