GAZB - Natural Gas: We Are Nervously Long

• This Thursday, we expect the EIA to report 2,510 bcf of working gas in storage for the week ending February 5.
• We anticipate to see a draw of 179 bcf, which is 58 bcf larger than a year ago and 54 bcf larger vs. the five-year average.
• Over the next 30-day period, total natural gas demand is expected to average 126.0 bcf/d, which is 11.7 bcf/d higher than a year ago.
• If you have exposure in the front month contracts (Mar. or Apr.), you are a hostage to the whims of the weather (just like us).
• Strategically and fundamentally it makes sense to buy the dips in summer contracts because our EOiS storage index is currently very low.

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