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Lower Nat Gas Production


The news that a portion of US gas production lost from the storm remains off-line, combined with a new low in the dollar and some competition for US Gulf Coast supplies from foreign buyers because of the storm justifies the bounce from yesterday’s low. On the other hand, US LNG production is thought to be poised to come back on-line with a story overnight indicating that US LNG plants did not suffer major damage from the hurricane. Furthermore, the EIA yesterday indicated that US natural gas liquid production in June increased by 452,000 barrels per day relative to May and we also suspect that the net spec and fund long in natural gas at last Friday’s high reached the highest level since January 2019.


The crude oil market continues to garner support from storm damage reports and therefore because of less production flowing from the Gulf of Mexico area. Also providing support against a recent minimal corrective track is news that OPEC might have over complied with production restraint last month and there were favorable Chinese manufacturing data points released overnight.

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