Natural Gas - Not All Hope Is Lost
www.hfir.com
Natural gas prices have so far held onto the $2 handle with May trading around $2.256/MMBtu. Readers should be aware, however, that the natural gas market is currently in steep contango.
With May expiring soon, June is trading near $2.418/MMBtu, and if fundamentals do not flip into a deficit soon, it would pressure prices back to the low $2s.
Speaking of fundamentals, natural gas bulls will not be pleased to hear that Lower 48 gas production remains resilient as ever averaging around ~101 Bcf/d. In fact, over the weekend, Lower 48 gas production breached ~102 Bcf/d.
