South Central storage drawdown fuels bullish outlook for gas futures market

摘要

Another net withdrawal from gas storage in the US South Central region is keeping an inventory deficit there largely intact through late July, helping to reignite a rally in the Henry Hub futures market. On July 29, the latest storage report from the US Energy Information Administration showed a modest 3 Bcf drawdown from inventory in the South-Central region, dropping stocks to an estimated 999 Bcf. While not atypical for late July, the South Central storage withdrawal is still a bullish indicator for gas demand in the US Gulf Coast region where rising pipeline and LNG exports have tightened the supply balance this summer.