Natural gas balances, as of today, are not supportive of higher prices. Some of you may think that this is such an obvious statement, but what I am here to tell you is that US natural gas fundamentals have worsened over the past week.
Looking at our latest supply/demand projections, we are seeing a surplus of 1.74 Bcf/d. Translating this into storage injections, we see triple-digit injections for the next 2 reports, at minimum.
Daily balances are considerably worse than we expected, so we have revised higher 6/2 injection from +110 Bcf to +130 Bcf.
As a result, we have revised higher our November storage forecast to ~3.98 Tcf, which will be higher than that of 2020.
