GAZ - Natural Gas Trading: 3 Reasons Why We Remain Bearish (In The Short Term)

• This week, we expect the EIA to report a draw of 71 bcf (a final estimate will be released on Wednesday).
• If the latest weather forecast remains unchanged, total natural gas demand should increase by 4.3 bcf/d y-o-y (on average) over the next two weeks.
• Dry gas production is still quite strong and so is wind generation, which is displacing natural gas consumption in the Electric Power sector.
• Storage deficit vs. 5-year average is projected to shrink by 68 bcf by April 9 (from -160 bcf to -92 bcf).
• We continue to hold some of our short positions and we will probably continue to sell the rallies (for three reasons - scroll down below).

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