Daily Market Report – October 6, 2020

Hurricane Delta is now a Category 2 storm and is likely to impact parts of the central Gulf Coast and Southeast regions. The intensity of the storm is to be greatest on Oct 8^th and 9^th with hitting the coast sometime around that time frame.

Total Gulf region production is lower by 1.3 Bcf/d today as many offshore operators evacuated personal yesterday. The path is clearly through major oil and gas production regions. Here is a map produced by the EIA yesterday that shows a direct path through offshore facilities.

Here is a view of today’s production dropping in the Gulf Region.

Today’s Fundamentals:

 Daily US natural gas production is estimated to be  84.4 Bcf/d this morning. Today’s estimated production is -2.29 Bcf/d to yesterday, and -1.64 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 68 Bcf today,  -2.88 Bcf/d to yesterday, and -2.37 Bcf/d to the 7D average. US power burns are expected to be 32.44 Bcf today, and US ResComm usage is expected to be 11 Bcf.

Net LNG deliveries are expected to be 7.8 Bcf today.

Mexican exports are expected to be 6.3 Bcf today, and net Canadian imports are expected to be 4.2 Bcf today.

Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960

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