From RBN Energy:
...Storage Outlook: The reclassification is not completely out of the ordinary. While the net change did result in an increase of 105 bcf, the number of molecules added to facilities was only 97 bcf. Thus, this week again did not meet the 5 year weekly maximum nor did it achieve the 129% of the 5 year average injection used as the basis for our two storage injection metrics.
- Supply Trends: Total supply rose 0.3 bcf/d to 70.6 bcf/d. US production and Canadian imports were both higher with Mexican exports and LNG imports unchanged. The US Baker Hughes rig count rose 6 to 1,861 with both oil and natural gas activity higher. The Canadian rig count rose 8 to 153 as the seasonal decline may have come to an end. Thus, the total North American rig count rose 14 to 2,014 and now surpasses last year by 122. The higher efficiency US horizontal rig count rose 5 to 1,248 and stands 152 above last year. There has been exceedingly little mention of the upcoming tropical storm season. Gulf of Mexico (GOM) production has plummeted. Still, companies seemingly shut in production more readily than in years past and this could affect supply this injection season.
- Demand Trends: Total demand fell 2.7 bcf/d to 58.4 bcf/d. Power demand was higher while R&C and industrial demand slipped. Electricity demand rose 1,356 gigawatt-hrs to 70,208, which surpasses last year by 2,520 (3.7%) and the 5 year average by 493 (0.7%). While market focus rests mainly on US production, demand remains very impressive. This is historically near the lowest demand period and thus the injections witnessed in the next couple of weeks will likely be the largest of the season...MORE
Higher U.S. Temperatures Won’t Be Enough for Heat Yet
Temperatures are forecast to rise above normal in the Midwest as May comes to an end, although a heat wave strong enough to drive up energy use across the U.S. is still weeks away, said Matt Rogers, president of Commodity Weather Group LLC.Here's the day's action via FinViz, $4.5150 last:
Readings across the northern Great Plains and Midwest are expected to reach more than 5 to 8 degrees Fahrenheit (2.8 to 4.4 Celsius) above normal from May 24 to 28, Rogers said in his outlook today. The heat will be offset by periods of milder weather brought on by rain.
“We see bursts of warming at times into the Midwest and East,” said Rogers, who’s based in Bethesda, Maryland. He said relatively low temperatures and “associated rainfall risks seem to dampen any attempts at any major early season heat.”
Hot weather in high-population areas spurs electricity use as more people turn to air conditioners to keep cool. That may also translate into increased natural gas demand for power generation....MORE
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