GAZB - Natural Gas: The Ratio Between Fundamentals And The Price Level Is Still Mostly Bearish
- This Thursday, we expect the EIA to report 1,776 bcf of working gas in storage for the week ending March 5.
- We anticipate to see a draw of 69 bcf, which is 3 bcf smaller than a year ago and 20 bcf smaller vs. the five-year average.
- Over the next 30-day period, total natural gas demand (consumption + exports) is expected to average 100.4 bcf/d, just 1.4 bcf/d higher than a year ago.
- Storage deficit relative to the 5-year average is projected to shrink by 85 bcf by April 9.
- In our view, the ratio between fundamentals and the price level is still mostly bearish, but $2.600 is a strong support level.
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Natural Gas: The Ratio Between Fundamentals And The Price Level Is Still Mostly Bearish