MLPG - Natural Gas: Supply Is Increasing; Demand Remains Volatile

• Currently, I expect the EIA to report a build of 58 bcf this week (a final estimate will be released on Wednesday).
• The annual storage deficit is projected to expand by 33 bcf by July 23.
• The daily impact of non-degree-day factors on natural gas consumption in the Electric Power Sectors is now bearish (i.e., negative) - both in absolute and relative terms.
• I am not prepared to go long. However, I have already partially reduced my short exposure.
• If the latest weather forecast remains unchanged, total natural gas demand will increase by just 3.2 bcf/d y-o-y (on average) over the next two weeks, while total supply will increase by 4.2 bcf/d (y-o-y).

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