Daily Market Update March 14, 2022
Early Morning Update
The Apr ‘22 natural gas contract is trading down $0.12 at $4.60. The Apr ‘22 crude oil contract is down $4.53 at $104.80.
Summary
Over the weekend, most of the country experienced colder temperatures that pushed total U.S. demand on Saturday to its highest level for the week at 104.8 Bcf/d, with very little changes in the production, import, and LNG export rates. Production was still around the 91-92 Bcf/d levels it was at towards the end of last week. Today, U.S. demand sharply fell by 13.6 Bcf/d to 86.5 Bcf/d due to a rapid warm-up of temperatures in the Eastern U.S. It is projected that 12 Bcf/d of the 13.6 Bcf/d drop-off is from the Residential/Commercial sector alone. Res/Comm demand is down 6.0 Bcf/d in the Midcon region, which is seeing a temperature increase of around 20 degrees on the day, and down around 3.0 Bcf/d in the Northeast. Industrial demand also fell 1.0 Bcf/d to 24.4 Bcf/d, putting it around the same rate as it was last week. Production did not change since the weekend and is holding steady at the 92 Bcf/d rate, making it slightly higher than the production rate on Friday, but still 2.0 Bcf/d lower than it was most of last week. Weather predictions are showing that this week should have warmer temperatures, with highs in the 50s-60s for most of the country, but there is a chance of storms toward the end of the week that could bring in a slight cooldown.
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