- LNG export loss of ~2 Bcf/d has altered the US natural gas market from a one-sided bet to a mediocre one-sided bet (to the upside).
- International natural gas prices, on the other hand, are now a one-sided bet.
- The impact of the ~2 Bcf/d loss will translate into ~3.5 Tcf storage by November, up from ~3.3 Tcf.
- Despite the demand loss, however, power burn demand is at an all-time high for this time of the year, while Lower 48 production is failing to keep up.
- US natural gas market will continue to grind higher, so while this is a temporary bump, readers should know that US gas fundamentals remain bullish.
For further details see:
Natural Gas Prices Blunted By LNG Demand Loss But Fundamentals Remain Tight