Pure Fuel Information: Will Chilly Climate and Tight Storage Drive Costs Above $four.02?…

LNG Exports Hit Report Excessive

Liquefied pure fuel (LNG) exports continued at a document tempo, with feed fuel flows reaching 15.four Bcf/day—up three.eight% week-over-week. With international fuel markets nonetheless adjusting to geopolitical disruptions, U.S. LNG stays a vital provide supply, notably as European storage ranges sit at 47% capability, under the five-year common.

The Trump administration’s current choice to elevate restrictions on new LNG export tasks is one other supportive issue. The transfer reactivates a backlog of pending approvals, doubtlessly rising long-term U.S. export capability and tightening home provides.

Storage Attracts Outpacing Expectations

Thursday’s EIA report confirmed a -100 Bcf storage draw for the week ending February 7, exceeding analyst expectations of -91 Bcf. Though the draw was smaller than the five-year common of -144 Bcf, inventories are actually 9.2% decrease year-over-year and a couple of.eight% under their five-year seasonal common.

With demand surging, the U.S. lower-48 fuel market noticed consumption hit 110.zero Bcf/day, a 14.2% year-over-year improve. Residential and business sectors are driving the majority of demand, alongside a four.eight% rise in electrical energy output from utilities.

Manufacturing Edges Larger however Fails to Offset Demand

Dry fuel manufacturing within the lower-48 states rose to 106.four Bcf/day, a modest zero.5% year-over-year improve. Nevertheless, with demand considerably outpacing provide, inventories are anticipated to stay tight. Moreover, Baker Hughes reported a slight uptick in U.S. pure fuel drilling rigs, rising to 101, however rig counts stay far under 2022 ranges, limiting manufacturing growth.

Market Forecast: Bullish Bias Holds, however Resistance Looms