Natural Gas Fundamentals Are Turning The Corner

Over the past 2-weeks, we have pointed out that the natural gas market is finally turning the corner. And in terms of fundamentals, we are finally seeing the market returning to a small deficit.

Although Lower 48 gas production surged back to ~101+ Bcf/d to start July, LNG gas exports have also returned offsetting the production boost. And with power burn demand now hitting its apex, we expect tighter fundamentals to start giving prices a boost.

LNG

And looking at our projected storage injections over the next 5 reports, we see a deficit of 21 Bcf vs the 5-year average.