GAZB - Natural Gas Prices Slammed As Bearish Weather Returns To The Fold
- Weather models turned bearish over the weekend pushing demand forecasts lower as well as prices.
- We estimate storage injections over the next 5 EIA reports to be 36 Bcf higher than the 5-year average but 48 Bcf below last year.
- Based on the current projections, we have the US natural gas market at a small surplus of ~1 Bcf/d.
- For those of you looking to trade NG futures, we would hold off on doing that for now. There are no near-term catalysts to significantly decrease or increase the price. It's more of a wait-and-see type of market for traders. So hold off on your dry powder and wait for an opportunity down the road.
- For those of you allocating capital to NG producers, we have gone long EQT in anticipation of a tighter balance through the summer. We think now is a good time to start building a core position.
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Natural Gas Prices Slammed As Bearish Weather Returns To The Fold