HDDs and Powerburn are trending above 2019 levels based on the U.S. Energy Information Admnistration (EIA) and NOAAthe ‘s National Weather Service. Bullish factors are colder wheather and expectations that the plunge in oil prices to an 18-year low will reduce shale drilling and natural gas extraction as shown by Baker Hughes in its last rigs count report on Friday. Thursday’s weekly EIA report of +73 bcf left total U.S. nat-gas supplies at 2,097 bcf in the week of Apr 10, down from the 2-year high of 3,732 bcf posted in the week of Nov 8. Inventories are up +68.2% y/y and are +21.4% above the 5-year average, the most above the 5-average in 3 years.
Source: NOAA’s National Weather Service and U.S. Energy Information Admnistration (EIA)
For interactive chart, click here