Daily Market Update July 11, 2022
Early Morning Update
The Aug ‘22 natural gas contract is trading up $0.59 at $6.62. The Aug ‘22 crude oil contract is down $2.29 at $102.50.
Summary
Over the weekend, total demand fell by over 4.0 Bcf/d, before gaining back 1.0 Bcf/d today. Total demand is now at 93.6 Bcf/d, which is over 2.0 Bcf/d lower than last week’s average. The main driver of both the demand fall and slight rebound is power burn. Both the decline and gains of power burn that were seen over the weekend come from the Northeast and the Southeast regions. Res/comm demand also dropped by a total of 0.3 Bcf/d over the weekend, but Industrial Demand stayed flat. Production has remained flat at 94.6 Bcf/d, which is the same level it’s been at for a few weeks now. Exports to Mexico did see a decline since last week by about 0.5 Bcf/d, making the current rate 6.0 Bcf/d. However, LNG exports saw virtually no change and are at the same 11.2 Bcf/d rate since the accident at the Freeport Facility. For the upcoming week, weather projections show warmer weather across the CAISO, ERCOT, and Midcon regions, while the East Coast remains around average for this time of year. With extreme hot weather driving record power demand across Texas, ERCOT has issued a Conservation Appeal, asking Texan power users to voluntarily conserve electricity today between 2:00 and 8:00 today.
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