- Hotter weather over the weekend combined with no increase in Lower 48 production propelled natural gas prices up by ~10%.
- September should see LNG exports from the US rebound thanks to better economics.
- But the bottom is messy because the market's concern about US storages getting close to tank top needs to go away first.
- The market will do everything in its power to avoid the tank top scenario even if it means that it overly discounts prices in the near term.
- As a result, the key ingredients for higher prices are still hotter weather and lower production, so if these two variables continue to trend in the same direction, expect us to turn into bulls.
https://seekingalpha.com/article/4356457-natural-gas-messy-bottom
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