Is Natural Gas Turning The Corner?
It's been a long time in the making but the natural gas market is starting to turn the corner. Following 3 consecutively bullish EIA natural gas storage reports, implied balances have been far tighter than our fundamentals are suggesting.
There are three very important fundamental variables that will alter the trajectory of natural gas going forward.
Lower 48 production growth has stalled completely.
LNG gas exports y-o-y will push total gas demand to an all-time high for this summer.
Power burn demand is likely to surprise to the upside.