Daily Market Report – November 6, 2020

Yesterday the EIA reported a -36 Bcf withdrawal, which came in more bullish than analyst expectations. This was the 3^rd report to show tighter fundamentals than the market had been expecting. The price action yesterday disregarded the storage number and seemed to follow the bearish weather progression more.

We are currently on track to have the 5^th warmest November of all time when you assume normal past the 15D forecast. Any additional warmth and we would easily overtake 2009 for the number 4 spot.

2016 has been stated as a viable analogue for this years strong La Nina pattern. We only need to lose 30 more GWDDs to get to 2016 levels.

Source: Bespoke Weather

Past November, the CFS remains in the same warm territory. Here is the latest look for December.

Today’s Fundamentals:

Daily US natural gas production is estimated to be  89.2 Bcf/d this morning. Today’s estimated production is -1.23 Bcf/d to yesterday, and -1.24 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 72.3 Bcf today,  +0.38 Bcf/d to yesterday, and -7.86 Bcf/d to the 7D average. US power burns are expected to be 24.94 Bcf today, and US ResComm usage is expected to be 15 Bcf.

Net LNG deliveries are expected to be 10.3 Bcf today.

Mexican exports are expected to be 6.1 Bcf today, and net Canadian imports are expected to be 3 Bcf today.

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