Natural gas demand picking up
Posted: Wed Apr 21, 2021 6:56 pm
Stifel Industry Brief:
"U.S. natural gas markets tightened by 5.7 Bcfpd y/y this winter as supply declined by 4.1 Bcfpd and demand increased 1.6 Bcfpd. Lower
associated natural gas production contributed to reduced supply while surging LNG exports boosted demand. As a result, natural gas storage
shrank from the high end of the 5-year range to near-normal levels over the course of the winter even though weather was 1.3% warmer than
the prior 4-year average. We look for markets to remain under-supplied for the remainder of this year and project a slight undersupply for
2022 despite a 2 Bcpd (2.2%) increase in dry gas production next year."
NYMEX strip prices for Q3 and Q4 are higher than the May21 contract that closed at $2.69 today.
"U.S. natural gas markets tightened by 5.7 Bcfpd y/y this winter as supply declined by 4.1 Bcfpd and demand increased 1.6 Bcfpd. Lower
associated natural gas production contributed to reduced supply while surging LNG exports boosted demand. As a result, natural gas storage
shrank from the high end of the 5-year range to near-normal levels over the course of the winter even though weather was 1.3% warmer than
the prior 4-year average. We look for markets to remain under-supplied for the remainder of this year and project a slight undersupply for
2022 despite a 2 Bcpd (2.2%) increase in dry gas production next year."
NYMEX strip prices for Q3 and Q4 are higher than the May21 contract that closed at $2.69 today.