Natural gas prices exploded yesterday to levels not seen in years. As prices move higher, C2G is not unwinding as quickly as expected.
This is from Criterion Research showing the gas generation’s share of total thermal generation. As seen, gas gen continues to remain strong in the back half of June. The fear is that is very little coal gen capacity now available after all the retirements. This will be something to keep an eye on in July with prices now well above $3.50.
Today’s Fundamentals
Daily US natural gas production is estimated to be 91.1 Bcf/d this morning. Today’s estimated production is -0.91 Bcf/d to yesterday, and -1.51 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 78.7 Bcf today, -2.62 Bcf/d to yesterday, and +4.17 Bcf/d to the 7D average. US power burns are expected to be 42.3 Bcf today, and US ResComm usage is expected to be 8.8 Bcf.
Net LNG deliveries are expected to be 11.2 Bcf today.
Mexican exports are expected to be 7.2 Bcf today, and net Canadian imports are expected to be 5.6 Bcf today.
The storage outlook for the upcoming report is +70 Bcf today.
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ION-Energy-Daily-Report-June-30-2021.pdf