Natural Gas getting more bullish each week

[dan_s]

Tutor Pickering Holt: U.S. Natural Gas Storage Recap June 8, 2018

Bullish inventory runs continues with no signs of stopping

92bcf build in-line with expectations. Natural gas inventories 513bcf (~22%) below normal as the deficit increased 13bcf w/w. Demand remains strong with warmer-than-normal temperatures expected. However, stagnant supply equally surprising as US production hovers around 80bcfd (as been the case since mid-April).

Next week's setting up another smaller-than-normal build after TRP CN declared Force Majeure on Leach Xpress following an explosion in WV yesterday morning. Though the magnitude and duration of the impact remains uncertain, removal of 1.5bcfd of connectivity to southeastern markets has us thinking volumes are at most flat next week.