As discussed
here back in December, natural gas continues to be pressured by the extraordinarily warm winter. EIA just released the storage numbers for the week and we continue to have far more gas in storage than is typical for this time of the year.
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| Working gas in underground storage compared with 5-year historical range |
Gas futures responded violently as the market was hoping to see a lower inventory number.
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| Natural gas futures contract (intraday) |
The long-term trend of divergence between crude oil and gas is becoming even sharper. The US should be focused on deploying more natural gas across industries that currently rely on liquid fuels as well as accelerating gas liquification capabilities to develop gas export industries.
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| Oil vs nat gas (dollars per barrel) |
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