Daily Market Update February 07, 2022
Early Morning Update
The Mar ‘22 natural gas contract is trading down $0.22 at $4.35. The Mar ‘22 crude oil contract is up $0.31 at $92.00.
Summary
Over the weekend, total demand for natural gas had a sharp drop-off from the high values at the tail end of last week. It is currently at 128.9 Bcf/d, which is the third continuous day of a total demand decline since Friday, where it reached 140 Bcf/d. The res/comm sector drove the decline in total demand, dropping by more than 8.0 Bcf/d since Friday, and is currently at 51.1 Bcf/d. The largest declines were in the Northeast, which was just coming off of a large winter storm, and the Southwest. The Midcon region was the only area to see daily increases in res/comm demand. Power burn also saw a significant decrease in demand over the weekend. Power burn dropped 3.7 Bcf/d since Friday and is currently sitting at 29.8 Bcf/d. Industrial demand was the only area that saw an increase. It rose 0.6 Bcf/d since Friday and is currently at 26.2 Bcf/d. Canadian Imports saw a slight decrease over the weekend and are currently at 7.7 Bcf/d, while LNG exports saw a rise to 13.1 Bcf/d, which marks a high from last week. This upcoming week will actually see a slight break from the colder weather. A warm front will be in place until the end of the week when temperatures are expected to drop again. Natural gas demand is expected to continue to taper off until the cold returns.
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