- Oil prices are going to face the SPR release headwind, but natural gas has no SPR.
- Natural gas prices in the US have diverged significantly with global LNG prices.
- But with low absolute storage and marginal LNG exports driving the price, we see US gas prices going way higher this summer.
- How high natural gas prices will go will depend on where Lower 48 gas production is by this summer. At ~95 Bcf/d, we're far away from the equilibrium.
- Stay long natural gas producers, natural gas will be the first energy crisis signal in the US.
For further details see:
U.S. Natural Gas Will Be The First Energy Crisis Signal, There's No SPR For That