Morning Thoughts – Oldinvestor

Wow, SLB had like a perfect down day yesterday. 1 hr candles look like a Heikin Ashi Chart. With LNG ramping up and prices stalling, I’m missing something. I’ve got enough data to know there is something strange here. It could be weather related, but I’d rather go with storage. It is also possible that there was the expectation that the Cameron export facility would be up and running and isn’t. I know they had power outages in that area and is the cause for Cameron being down to this point.

I don’t have much to say today; I do think the market will find support fairly soon and LNG will start showing strong demand even with seasonal declines in power burn. Maybe once Cameron is online. One other thing could be that it’s more about the number of boats that are headed to the US or lack of boats headed to the US. Cameron is down and those boats could be diverted this time to another facility, such as one of Cheniere Energy’s ports. This may be very unlikely, but in this situation, I’m sure a lot of arrangements could be made since no one is at capacity and those tankers cost someone a lot of money each day to sit still or to move across the water regardless.

My point in all that is the bit players in the natgas market may see that there isn’t enough global demand yet in LNG, and we are seeing a surge in demand at the US export facilities right now, but we don’t know what the demand picture looks like a month or two from now. Big players probably do know. Samir Madani might know at tankertrakers.com. I will have to ask Samir about this. I don’t know if it worth his efforts to track LNG tankers.

UNL – 50% in with an average of $7.4

BOIL/SLB covered options

BOIL covered puts and SLB covered calls

Oh, and SLB is down on oil. I’ve got a 30 day wait anyway. I won’t be making any changes to my positions. Have a good weekend.

Oldinvestor