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Bearish Fundamentals Still Weigh on US Gas

NATURAL GAS

US natural gas is struggling against bearish fundamentals and high storage levels ahead of this afternoon’s EIA release.

  • The EIA report is expected to show a draw but overall storage levels will remain high.
  • High production levels and low demand continue to weigh on the market.
  • As of Wednesday, Reuters reported withdrawal estimates ranging from 48 Bcf to 61 Bcf, with a median draw of 54 Bcf. Bloomberg’s poll showed a similar range and a median pull of 55 Bcf.
  • Freeport is showing signs of edging towards full capacity which is helping to provide some upward support after its closure for eight months.
  • US Natgas MAY 23 down -1.6% at 2.15$/mmbtu

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