From: research
Sent: Wednesday, April 01, 2020 7:13:51 AM (UTC-06:00) Central Time (US & Canada)
To: research
Subject: Daily Market Report – April 1, 2020
Saudi Arabia has made good on its efforts to ramp up oil exports starting today, with a first wave of crude already on its way to Europe and the U.S. Saudi plans on increasing supply to 12.3 MMbbls/d, 300Mbbls/d above their sustainable production capacity and 2.6MMbbls/d above their production levels in February.
The impacts of WTI at $20.70 /bbl and Brent @ $25.49/bbl are now very apparent in the US Shale rig counts. Here is the latest from Enverus’ daily rig count which shows a continued drop each day. The Permian is the hardest hit with 339 ( -33 rigs WoW, -49 MoM, and -77 YoY) rigs in operation as of March 30th .
Fundamentals:
Daily US natural gas production is estimated to be 88.4 Bcf/d this morning. This is a significant drop versus yesterday. Typically on the change of the month there are issues with the nominations. We expect production levels to move higher in later nomication cycles.
Natural gas consumption is modelled to be 83.1 Bcf today, -2.3 Bcf higher than yesterday and +3.0 Bcf higher than the 7D average. US power burns are expected to be 26.3 Bcf today, and US ResComm usage is expected to be 27.2 Bcf.
Net LNG deliveries are expected to be 9.3 Bcf/d today.
Mexican exports are 5.7 Bcf/d. Canadian imports dropped to 3.7 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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-Apr-1-2020.pdf