Energy Prospectus

Watch the daily update here: https://www.weatherbell.com/premium/

If Dr. Joe's forecast for the remainder of Q1 is correct, we may see natural gas in U.S. and Canada storage drop to an all-time low by the end of this winter heating season. Chicago is the "Bulls Eye" for natural gas demand for space heating and Joe is predicting temps going to -20F in the Great Lakes Region.

It is the below normal temps in February going deep into the South that will cause the really big draws from storage. Everyone in the South, from Texas to Georgia, heats with gas.

Keep in mind that in the last ten days of each month we may see some wild swings in gas prices as hedge funds have to close out their front month futures contracts. If you hold a long NYMEX futures contract for gas on the day it expires, you must take physical gas.

When I was working in public accounting (1979) I had a client that forgot to close out five egg futures contracts. He had to take five refrigerated train cars full of eggs delivered to the rail spur in Tulsa. Egg prices in Tulsa were very cheap for the next two weeks.

There is also going to be a BIG INCREASE in demand for gas to fill LNG orders.

"One of the biggest factors affecting the U.S. natural gas market in 2019 will undoubtedly be the dramatic rise in LNG export demand. The slate of liquefaction and LNG export capacity additions this year will boost U.S. demand for feedgas supply to nearly 9 Bcf/d by the end of the year, almost tripling the 2018 full-year average of 3.1 Bcf/d and close to doubling the December 2018 average of 4.6 Bcf/d, with the lion’s share of that growth happening along the Texas and Louisiana Gulf Coast. Three liquefaction trains — one each at Cheniere Energy’s Sabine Pass and Corpus Christi terminals, as well as one at Cameron LNG — are likely to be fully operational in the first quarter, with five additional trains due in rapid progression later in 2019. That much new gas demand concentrated in one region is bound to disrupt physical flows and pricing dynamics." - RBN Energy

Full Report: https://rbnenergy.com/let-me-move-you-p ... ts-in-2019

Chicago's ten day forecast: https://www.wunderground.com/forecast/u ... alwx_10day

Joe Bastardi thinks Chicago might see -20F by the end of January. If it hangs around, Lake Michigan will freeze.