Natural Gas seasonals are very weak at this time of year, but they should most probably be ignored. Why? Because according to Bloomberg, global demand for natural gas is expected to be at 436 million tons in 2022, but there is only 410 million tons of available supply. The expectation is that the new rush for natural gas projects will not come online now until 2024. The Asia-Pacific head of gas and LNG research at Wood Mackenzie, Valery Chow, said to Bloomberg that the ‘market will tighten going into winter as European and North Asian buyers compete for volumes.

Will this result in US gas demand too? Or will the seasonals still play out?

Major Trade Risks: Any de-escalation in the Russia/Ukraine conflict should result in the seasonal trend of weakness returning.

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