Natural Gas Market Remains In Surplus But Positive Catalysts Are On The Horizon
Natural gas prices rallied a bit in the last week, but I'm here to tell you that not much has changed on the fundamental front. There are some clear bullish catalysts on the horizon though to start this article off with.
Power burn demand is likely to set an all-time high this summer.
Natural gas production from US shale gas basins will see reduced growth going forward, but production overall will remain strong due to associated gas production from US shale oil basins.
Strong LNG exports y-o-y will help eliminate some of that surplus.
With all that said, implied balance in the US remains weak, and this is resulting in very elevated injections going forward.