From: research
Sent: Tuesday, April 07, 2020 7:07:14 AM (UTC-06:00) Central Time (US & Canada)
To: research
Subject: Daily Market Report – April 7, 2020
Henry Natural gas prices continue rise this morning with prices sitting at 1.79. Along with the US benchmark, most global natural gas price also gained over the last week. US Gulf Coast LNG economics are still tight for most of the summer, but the recent increase in Brent prices have made the markets linked to crude prices more attractive destinations for US LNG this summer.
|
Units |
Current Price |
vs. Last Week |
vs. 4 Weeks Ago |
vs. Last Year |
|
|
Henry Hub MAY 20 |
$/MMBtu |
1.79 |
0.15 |
-0.20 |
-0.83 |
|
JKL MAY 20 |
$/MMBtu |
2.85 |
-0.02 |
-0.48 |
-3.80 |
|
NBP MAY 20 |
$/MMBtu |
2.08 |
0.05 |
-0.87 |
-4.27 |
|
TTF MAY 20 |
$/MMBtu |
2.31 |
0.08 |
-0.73 |
-4.30 |
|
13% Brent JUN 20 |
$/MMBtu |
4.40 |
0.98 |
-0.55 |
-4.28 |
|
|
|
|
|
|
|
|
Units |
Prompt Spreads to Hhub |
|
|
JKL – HHub |
$/MMBtu |
1.09 |
|
NBP – HHub |
$/MMBtu |
0.24 |
|
TTF – HHub |
$/MMBtu |
0.43 |
|
13% Brent – HHub |
$/MMBtu |
1.64 |
Fundamentals:
Daily US natural gas production is estimated to be 89.9 Bcf/d this morning. Today’s estimated production is -1.5 Bcf/d lower than yesterday, and -1.78 lower higher than the 7D average. This is quite a large drop DoD; hence we suspect this will be revised higher in later nomination cycles.
Natural gas consumption is modelled to be 73.7 Bcf today, -1.3 Bcf lower than yesterday and -4.69 Bcf lower than the 7D average. US power burns are expected to be 28.3 Bcf today, and US ResComm usage is expected to be 16.8 Bcf.
Net LNG deliveries are expected to be 8.3 Bcf/d today. Sabine Pass continues to hold steady around 3.3 Bcf/d which is 75-80% of its peak intake.
Mexican exports are 5.2 Bcf/d. Canadian imports dropped to 4.8 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-Apr-7-2020.pdf