US Natural Gas Storage To Exceed 2020 Peak

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.