NatGas Price Forecasts Climbing on Hot Summer, Lower Production

摘要

Energy analysts are coalescing around a bullish view for North American natural gas prices through this year and into 2017. The gas storage injection pace this summer has been consistently light versus a year ago, with Thursday’s report 31 Bcf lighter than the injection reported for the same week last year, highlighting a contraction in fundamentals (see Daily GPI, July 1). “Keeping in mind that spot prices averaged under $2/MMBtu for the entirety of winter 2015/2016, this aggressive run in price, over such a very short amount of time, is attracting the attention of many,” Societe Generale analyst Breanne Dougherty said Thursday. “The natural gas market deserves said attention. We have long held a bullish call” for the second half of 2016 (2H2016), with expectations for prices to move higher through the summer.