Natural Gas - Is It Time To Buy?

With natural gas flirting with the $2 handle, it's time for us to reconsider our bearish stance on natural gas. Is it time to buy?

We don't think the timing is here just yet, but given the asymmetry of the setup, it does make you ponder what the incoming catalysts are that would make us want to go long natural gas.

But before we begin talking about the positive catalysts, we need to first rehash why prices remain so low.

South Central

This is the most bearish chart for natural gas today. South Central gas storage remains bloated. And as we exit the heating demand season, this chart won't look any better. We are going to see storage injections in 2 EIA reports, so the surplus will worsen.