SRE - Perfect storm lifts natural gas prices above $8.00

Natural gas (NG1:COM) prices crossed $8.00 per mmbtu Tuesday, putting the fuel on pace for its highest close since 2008. An increase in export demand, mitigated US supply response, warm weather, and rising coal prices have all contributed to the rally.  LNG maintenance reduced gas export volumes in April by 8%, according to Refinitiv vessel tracking data, as Sempra (SRE) and Freeport LNG both took trains down for 2-3 weeks of maintenance. However, as maintenance wraps up in May, export volumes are set to accelerate. Outside the US, Chevron (CVX) and BP (BP) both flagged falling international LNG production volumes in Q2. Maintenance outside the US is likely to increase reliance Gulf of Mexico exports into Europe during the quarter.  Domestically, it's still early in the earnings season; however, gas producer SM Energy (SM) flagged falling Q2 production volumes. Pioneer (PXD), Diamondback (FANG) and Hess's (HES) US business all flagged

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Perfect storm lifts natural gas prices above $8.00