Are regional storage levels supporting the bending of recession?
Yes. All major areas posted benefits, adding 39 BCFs to the South Central Region – a significant contributor to the national growth. In particular, the nonsalt storage in the area increased from 26 BCF, which shows weak power and strong production. Midwest and East regions indicated end-user demand to both, with the construction of 32 BCF and 36 BCF respectively. The Pacific and mountainous regions posted a slight advantage of every 7 BCF, but even these areas live comfortable above the five -year criteria, especially in the mountain region, 40% higher than its five -year average.
What does this mean for the natural gas bulls watching weather and LNG?
Major population centers that limit the demand for initial cooling are with cooler-to-average temperature, and LNG feedgas plateau flows, bulls have very little support. As long as the constant heat emerges or LNG oftech rises meaningfully, the trend of storage is likely to be beaten in June in June. This reduces the price support near $ 2/mmbtu, where traders are already showing symptoms of hesitation.
Short -term approach: Recession prejudice persists as storage surplus
This week’s strong-to-intake injection combines the broad theme of oversupply, with the demand to struggle to keep the production stable and absorb it. The market is likely to remain under pressure until the upcoming weather models increase rapidly warm or export volume. Traders should continue to continuously risk, especially with injections to constant expectations and topping to widen storage surplus.
