Blog Archives

RD Energy Newsletter: September 2018

September 2018 Energy Update
Key Drivers

  1. Natural gas production is up 8 bcf/day since August 2017
  2. Natural gas storage is running at a 23% deficit compared to August 2017 levels
  3. Natural gas Exports to Mexico hit an all-time high in August
  4. The summer of 2018 has not only been hot,

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RD Energy Newsletter: August 2018

August 2018 Energy Update
Key Drivers

  1. Natural gas storage levels are 24% lower than last year and 20% lower than the 5 year average
  2. U.S. natural gas production has reached a new high, but rising demand is keeping storage injections low
  3. Mild weather in the mid-west is offset by blazing heat in South,

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RD Energy Newsletter: July 2018

July 2018 Energy Update
Key Drivers

  1. June started the cooling season the 2nd hottest the nation has seen since 1950
  2. NG storage levels trailing both one year ago and 5 year levels.  Shortfall may exist into winter
  3. Looking at historical storage level fundamentals based on the current deficit NG prices could be around $3.75 /MMBTU- $4.00/MMBTU. 

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RD Energy Newsletter: June 2018

June 2018 Energy Update
Key Drivers

  1. Natural gas NYMEX is up for the third month in a row to $2.95/MMBTU
  2. Natural gas prices are up $.25/MMBTU in the past 30 days
  3. Supply/Demand balance week ending May 31: Supply of 85.7 bcf/day – demand 72 bcf/day = 13.7 bcf/day injected into storage
  4. Hot weather will increase power demand of natural gas
  5. Key question: Will the storage deficit be gone before winter if demand continues to increase faster than new supply?

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RD Energy Newsletter: May 2018

May 2018 Energy Update
Key Drivers

  1. After an extended winter, natural gas storage in the U.S. ended up with a 527 bcf deficit
  2. Current storage is 35% lower than last year and 22% lower than the 5 year average
  3. To make up the deficit an extra 5.5 bcf/year will need to be injected
  4. over the 29 weeks
  5. Natural gas production in the U.S.

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April 2018 Newsletter

April 2018 Energy Update

Key Drivers

  1. Natural gas prices have flattened with April NYMEX closing in late March at $2.691/MMBTU
  2. Natural gas continues to set new records 79.1 bcf/day or 7.3 bcf/day higher than a year ago.
  3. Oil prices are bullish with Crude Oil trading around $66/bbl. 

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RD Energy Newsletter: March 2018

March 2018 Energy Market Update

KEY DRIVERS

  1. Strong start to winter NG demand in December/January hit the brakes in February.
  2. Final end of the winter season NG storage expected to be around 1400 bcf.  The 5 year average is 1718 bcf.
  3. Having a deficit storage balance against the 5 year average is bullish. 

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RD Energy  Newsletter: February 2018

February 2018 Energy Market Update

KEY DRIVERS

  1. Natural gas NYMEX closed for February at the 2nd highest price since December 2014.
  2. The natural gas storage withdrawal for the week ending January 19th tied the 2nd highest storage reduction on record at 288 Bcf. 

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RD Energy Newsletter: January 2017


January 2018 Energy Market Update

Key Drivers:

  1. High natural gas storage withdrawals over the next month
  2. Can natural gas supply keep pace with demand
  3. Currently NYMEX is trading at $3.05/MMBTU

Commentary
The non-heating and no air conditioning “shoulder season” extended well into early November in 2017 pushing NYMEX prices down to $2.738/MMBTU the second lowest level of 2017. 

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RD Energy Newsletter: December 2017

December 2017 Energy Market Update

Key Drivers:
1. Natural gas closed at the end of November for December flow $.32/MMBTU higher than from a month earlier.
2. 2017 natural gas prices experienced both volatility and stability
3. December is forecasted to be colder than normal in the Midwest and Northeast
4.

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