LNG Exports From US Could Hit Bottom

Market data have been showing a downward trend in US exports of liquefied natural gas.

 

Upcoming figures this week could reveal whether the trendline changes direction.

 

Read on to learn more about what to watch this week in the LNG – and oil – markets.

 

Tom Seng, Assistant Professor of Energy Business at University of Tulsa’s Collins College of Business: “All eyes will be poised on the virtual meeting of the OPEC+ group this (past) weekend after the Thursday (4th June) meeting was cancelled. The extension of the existing 9.7 million-barrel per day (bpd) output curtailment through at least July seems to be a given.

 

“However, some in the group want that reduced to around eight million bpd thereafter. And Russia not only has concerns about the non-compliance among members, but also they are reluctant to give market share back to US shale producers who have begun to increase supply as prices have strengthened.

 

Tom Curran, Senior Energy Services and Equipment Analyst in Equity Research, B. Riley FBR, Inc: “We’ll be on the lookout for another bottom, this time in US liquefied natural gas exports.

 

From the week ended Tuesday, the 3rd June 2020, the US Energy Information Administration (EIA) reported LNG pipeline receipts of 5.3 billion cubic feet per day (Bcfd).

 

According to Refinitiv data, feedgas flows reached a 13-month low on Monday, the 2nd June 2020, of 3.7 Bcfd. That low compares to a daily, all-time record 9.5 Bcfd and the EIA’s current 2020 average forecast of 6 Bcfd.

 

“Will buying resume as economies worldwide continue to ramp back up with the phased conclusion of COVID-19 restrictions?

 

Source: Rigzone