Morning Thoughts – Oldinvestor

Well it appears US production increased a hair and Canadian imports decreased by the same or more. Overall supply is still holding in general. Demand took a large hit over the weekend due to cooling across the US. Power burn dropped by 10 Bcf/d. So weather becomes a bit of a factor now, but nothing worth getting excited over. LNG is resting still around 3.8Bcf/d and (pipeline) exports to Mexico reached a new high in the last few days. None of this is enough to overthrow LNG as the ever driving factor for current low prices.

Looks like Australia is (finally?) getting back up on their LNG exports : Australia’s LNG tankers sitting idle as global supply glut, COVID start to bite. 41 cargoes are upon ships, waiting for a destination. “Chevron’s LNG operation off the Western Australian coast which was initially destined for Asia was instead sent to Mexico after sitting idle for more than three weeks.”

I have a call, and an intern to babysit. I must go

My position

UNG – 60% in with an average of $11.73 – awaiting the end of NG as we know it.

I know this all sounds like the same info I posted last week, but still in the same (LNG) boat. No plans yet to add or take away from my position. Patience, and Good Luck