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Natural Gas

Natural Gas Storage Is Headed For The 2022 Lows

As weather models remain bullish.

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HFI Research
Feb 11, 2025
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Mother Nature isn't playing around this time around. Unlike the previous years where torch (bearish) patterns have best described heating demand, this year's persistent colder-than-normal weather has aided the natural gas bulls.

In the most recent ECMWF-EPS update, weather models remain bullish with heating demand materially higher than the seasonal norm. The implied deficit today is around ~40 Bcf/d with the figure going higher next week.

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ECMWF-EPS TDD Table

ECMWF-EPS TDD Chart

6-10 Day

10-15 Day

15-Day Cluster

Looking past the 15-day, ECMWF-EPS long-range outlook suggests the bullish weather will continue.

15-22 Day

Source: Weatherbell

22-29 Day

Source: Weatherbell

This forecast period will last into mid-March, which will give natural gas bulls the leg up they need to sustainably keep natural gas prices higher.

What are the fundamental implications?

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