What Does Natural Gas Look Like For 2024?
The US natural gas market has been and will continue to be in a surplus for the remainder of this injection season (till November 2023). So what does the US gas market look like for 2024?
There are various ways to tackle this question, but the outlook for 2024 will be contingent on this upcoming winter's setup. Once again, because fundamentals are expected to tighten going into the 2023/2024 winter (thanks to lower production), mother nature will have a big say in which direction prices will be biased. Looking at the preliminary fundamentals for 2024, we reached the conclusion that the upside is capped, and with where prices are today along the forward curve, we don't see any attractiveness in going long natural gas.
Source: CME