What’s Affecting Gas Prices? (Week of July 9, 2019)
Stratas Advisors expects a storage increase of 73 Bcf for the week ending July 5.
Average dry gas production was on the increase week-over-week by 0.45 billion cubic feet (Bcf/d) or 3.12 Bcf for the report week ending July 5. Demand from power generation reached a high of 40.56 Bcf/d during the report week. The average demand from power generation was 38.29 Bcf/d, an increase of 2.73 Bcf/d or 19.12 Bcf. LNG net exports from US also posted a year-to-date high of 6.31 Bcf/d indicating that export terminals that were under construction are shipping high send-out levels. We expect the levels to reach 9-10 Bcf by the end of 2019.
Our analysis leads us to expect a 73 Bcf injection level for the report week. Our expectation is 3 Bcf more than the current consensus of 70 Bcf and 4 Bcf less than the 77 Bcf five-year average storage build.
Mr. Haas leverages more than 25 years of integrated global energy experience as he leads a team serving the global energy industry clientele of the North American Midstream practice and institutional energy industry investors via ongoing independent research and retainer relationships. He currently oversees the Midstream research practice related to developments in the crude oil, condensate, NGL and natural gas industries.