GAZB - Natural Gas: Plenty Of Supply And Strangely Plenty Of Fear
- Currently, I expect the EIA to report a build of 72 bcf next week (a final estimate will be released on Wednesday).
- The annual storage deficit is projected to expand by only 5 bcf by July 30.
- Natural gas price has reached a seven-year high despite the fact that natural gas storage deficit (vs. 5-year average) is relatively moderate.
- The net supply of natural gas is increasing and is just 4 bcf/d short of an all-time high.
- Given how substantially overvalued natural gas is, I could not help but increase my short exposure.
For further details see:
Natural Gas: Plenty Of Supply And, Strangely, Plenty Of Fear