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US gas set new highs

NATGAS

US Natgas broken through the high from 6th May and now surged up 4.2% to 9.17$/mmbtu

  • Prices now the highest seen since 2008 as the bull trend from around 4.5$/bbl at the start of March shows no sign of stopping.
  • Gas stocks are at the low end of the 5-year range and domestic and overseas demand are continuing to push prices higher. US LNG exports are above 5-year levels with a weekly average of 234k mt last week. Overseas demand, particularly from Europe, will likely continue to grow as Europe strives to diversify away from Russian gas supply.
  • Short term hot weather may also boost air conditioning demand and reduce hydro power generation adding to the bullish sentiment.

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