From: research
Sent: Wednesday, April 01, 2020 7:13:51 AM (UTC-06:00) Central Time (US & Canada)
To: research
Subject: Daily Market Report – April 1, 2020

Saudi Arabia has made good on its efforts to ramp up oil exports starting today, with a first wave of crude already on its way to Europe and the U.S. Saudi plans on increasing supply to 12.3 MMbbls/d, 300Mbbls/d above their sustainable production capacity and 2.6MMbbls/d above their production levels in February.

The impacts of WTI at $20.70 /bbl and Brent @ $25.49/bbl are now  very apparent in the US Shale rig counts. Here is the latest from Enverus’ daily rig count which shows a continued drop each day. The Permian is the hardest hit with 339 ( -33 rigs WoW, -49 MoM, and -77 YoY) rigs in operation as of March 30th .



Daily US natural gas production is estimated to be 88.4 Bcf/d this morning. This is a significant drop versus yesterday. Typically on the change of the month there are issues with the nominations. We expect production levels to move higher in later nomication cycles.

Natural gas consumption is modelled to be 83.1 Bcf today, -2.3 Bcf higher than yesterday and +3.0 Bcf higher than the 7D average. US power burns are expected to be 26.3 Bcf today, and US ResComm usage is expected to be 27.2 Bcf.

Net LNG deliveries are expected to be 9.3 Bcf/d today.

Mexican exports  are 5.7 Bcf/d. Canadian imports dropped to 3.7 Bcf/d.

Bloomberg IM: Het Shah
enelyst DM:
Tel: 917-975-2960


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