Morning Update – April 20, 2020

Some decreases in production! As well with the cold leaving the northeast US, Canadian imports are back to lows. Demand is actually relatively strong vs last year, with the exception of Industrial demand being down 1.5 to 2Bcf/d. Res/Commercial still strong, Power burn still strong and of course LNG still incredible vs last year. I’m still a bit concerned LNG export declines will creep in, but… It should creep in slowly. Oil is crashing fast, this should help crush more production for more reductions in Natgas production.

My positioning.

UNG – 31% invested with an average of $13.28 (or a little better with my last sale of 5%, maybe a few cents)

USO – 10% invested with an average of $4.64 (barf)

I’ve heard production cuts are coming, so I may be inclined to buy a little more UNG soon. My warning below remains with USO. I will not be adding to this position. I will continue to hold USO, but I would not hold a 10% position in my 401k. I”m being a bit hypocritical by saying I’m willing to hold USO, yet I’m not really willing to hold a lot. Good thing this is a blog and not your go to source for trading advice eh! I will be waiting to make any moves. In not rush to lose more money. Good Luck