The injection season is in full swing. June contract expired last week and July contract is now the prompt month contract. It is down more than 17% y-o-y and is fundamentally undervalued. However, the whole energy complex that has been under bearish pressure lately - partly driven by a classical risk-off trade. Additionally, a 20% drop in the price of Central Appalachian coal has dented natural gas competitiveness on a relative basis.
Will electricity-driven demand from the electric power sector prop up natural gas price during this injection season? In this article, we will look