The late summer heat does remain a little bit supportive. It’s been hot a couple of days here and there, so air-conditioning demand does pick up.
LNG Export Demand and Production Ceilings
And liquefied natural gas demand remains structurally strong, with exports being about 17 to 18 billion cubic feet a day during the first half of the year, up 23% year-over-year as new export capacity has come online.
Production, though, remains a major ceiling. High US gas output and still comfortable storage prevent the domestic market from fully pushing the rally in ways you see in places like Asia and Europe.
This is a market that is starting to enter the time of year when people get a little bit more bullish. I’m starting to as well. But we still have a little bit of a wiggle here at the $3 level that causes a bit of a headache.