UNG - Natural Gas Fundamental Trend So Far This Year And Where Is Storage Headed

• Natural gas injection season so far this year implies a deficit of 1.29 Bcf/d.
• LNG export demand increases in 2022 will offset the production increase we see on the horizon.
• Assuming the current deficit persists, November storage will finish at ~3.568 Tcf with winter 2022 storage finishing at ~1.51 Tcf.
• Price reaction today as a result is the market forcing a supply or demand response. Since global LNG prices remain elevated, the market is trying to force producers to respond via higher supplies. But shale gas producers have already echoed a disciplined capex approach.

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