March 18, 2021 – Natural Gas Intelligence
Despite LNG Staying Power, Natural Gas Futures Extend Downward Slide Following Bearish EIA Inventory Report
By: Kevin Dobbs
As winter-driven Asian demand for U.S. exports begins to lighten, European Union (EU) natural gas storage inventories began rapidly drawing down. Analysts say that trend could power American exporters well into the spring months.
As of mid-March, there was 361 TWh of natural gas in storage in the EU, representing 32.5% of the region’s capacity, according to NGI data. That is nearly 270 TWh below the year-earlier level and 47.3 TWh below the five-year average.
“Economics had heavily favored exports to Asia over Europe since the summer of 2020,” said RBN Energy LLC analyst Lindsay Schneider. “However, that has shifted enormously over the past month, and Europe is once again the favored destination for U.S. LNG exports.” Given low storage inventories, she sees a “robust outlook” for exports to the EU “as we head into spring and summer.”
Read the full article here: https://www.naturalgasintel.com/despite-lng-staying-power-natural-gas-futures-extend-downward-slide-following-bearish-eia-inventory-report/
