GAZB - Natural Gas Prices Pull Back As Production Returns And Weather Outlook Turns Warmer
- Natural gas prices have pulled back as production normalizes and weather trends warmer than normal.
- Lower 48 production after briefly dipping below ~70 Bcf/d is now back to ~87 Bcf/d.
- LNG exports are rebounding while heating demand drops back to seasonal average.
- The medium-term damage is already done to natural gas storage as we see -350 Bcf for this week's EIA NG report.
- Long term, we are headed for insufficient natural gas storage. Depending on your time horizon, you can either be positioned in NG futures or NG producers to take advantage.
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Natural Gas Prices Pull Back As Production Returns And Weather Outlook Turns Warmer