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Tom Kirkman

Natural Gas Demand Remains Resilient Despite Coronavirus Concerns

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While I generally do not read or link to Seeking Alpha, I'll make an exception for this article.  Some rare good news these days about natural gas.

Good summary bullet points at the beginning.

Natural Gas Demand Remains Resilient Despite Coronavirus Concerns


  • Following more states announcing mandatory isolations, natural gas demand on a real-time basis remains resilient with no total demand drop.
  • The one area of weakness is coming from residential and commercial demand, which is taking the big part of the demand hit from the shutdowns.
  • But strong demand in power burn, industrial, and exports continues to offset the demand hit.
  • In addition, Lower 48 gas production is falling and will likely accelerate its decline in April as producers shut down well completions and shut-in high variable cost wells.
  • Our reasoning for why prices remain stubbornly low is that the fear of demand destruction is far greater than the actual impact. As traders fret over the impact of global LNG reduction potential, the market is unwilling to be bullish on any commodity today (with the exception of gold).  ...
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