Morning Thoughts – Lockdowns?

If you have a method for looking at global Natgas storage, with any word of “lockdowns”, it might be a good idea to keep an eye on global storage. Pandemic lockdowns do not cause LNG to stop flowing, full storage does. Last winter season was warm globally and natgas stayed well supplied. Once the Pandemic hit, natgas storage was already headed toward becoming full globally. This is far more a concern for Oil right now than Gas, but it is something to try and track. I don’t have a source for global natgas storage or even European. If I come up with one, like this one https://agsi.gie.eu/#/graphs/eu. I’ll be sure to share it. Of course there is the idea that homes and businesses will be heated more with more people staying at home.

My positions as of 10/29/2020

I’m getting killed by SLB. I stopped out of the extra 30 shares I had purchased. I do not have any confidence right now that SLB will stop falling. If oil is in trouble with my demand problems with the pandemic, then SLB is in more trouble. I will simply sit on it and wait for some sign of relief. I could roll the call down further and play it weekly for a while. I honestly don’t see SLB jumping back to $16 without oil prices jumping, and that doesn’t seem likely without some show of support in global demand. China will not carry that load.

I got started with 1 share of UNG, and I’m going to add 1 share at $12.32 now. I plan to continue to hold UNL until at least winter is over. Here’s to hoping it’s not too disappointing.

Today is EIA day, at 10:30 Eastern. I don’t know what to expect. I only know next week’s report will be one of the earliest draws to storage in a long time. Something about 2020… Good Luck

Oldinvestor

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