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NATGAS: US Natgas Faces Downside Risk: Goldman

NATGAS

Goldman sees short term downside risk for US nat gas prices due to strong production and weak demand. 

  • Its analysts expect hurricane Francine making landfall this week on the US Gulf Coast to possibly reduce power demand and potentially impact LNG exports out of the region.
  • Goldman expects the next window for tighter physical balances is October, which may support prices then as heating demand begins to show in parts of the country while Plaquemines gas demand for exports will likely pick up.
  • Says “while Matterhorne will provide room for currently stranded gas, we expect that further growth in associated gas production in the region will be gradual, consistent with our oil production growth expectations"

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