From: research
Sent: Friday, May 22, 2020 7:11:01 AM (UTC-06:00) Central Time (US & Canada)
To: research
Subject: Daily Market Report – May 22, 2020
The EIA reported a smaller-than-expected build yesterday for week ending May 15th. We were projecting a +79 Bcf, and the report came in at +81 Bcf. Total consumption for the week was 3.9 Bcf/d higher than the previous week with cooler weather primarily raising ResComm demand in the Northeast and Midwest. The weather map below shows the wide spread cold that resulted in the build that came in lower than LY and the 5 Yr avg. The current storage level as of this report is 2503 Bcf (+779 vs LY, +407 vs. 5Yr)
Looking forward to next week’s report for week ending May 22, we see a triple digit build once again. Weather recovered to more normal levels resulting in overall demand dropping by 5.9 Bcf/d week-on-week. Although, this looseness was offset by production dropping 2.6 Bcf/d drop from the previous week. Our early for the next report currently stands at +108 Bcf.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 82.7 Bcf/d this morning. Today’s estimated production is -0.01 Bcf/d lower higher than yesterday, and -0.86 lower than the 7D average.
Natural gas consumption is modelled to be 61.3 Bcf today, -1.837 Bcf lower than yesterday and -0.99 Bcf lower than the 7D average. US power burns are expected to be 27.0 Bcf today, and US ResComm usage is expected to be 9.6 Bcf.
Net LNG deliveries are expected to be 5.8 Bcf/d today.
Mexican exports are 5.4 Bcf/d. Net Canadian imports dropped to 3.7 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-May-22-2020.pdf