We are now at a critical time of the year in the natural gas market as withdrawals from storage in the US will shift to injections. The season where inventories decline lasts from November until March each year, and for the rest of the year, stockpiles tend to build to prepare for the next peak season during the coldest months of the year.

The price action in the natural gas market has been bearish since mid-November when the price of the energy commodity rose to its highest price since 2014 at $4.929 per MMBtu. The low for 2018 was at $2.53 in February, and in February 2019, the price returned to just above that level when nearby futures traded to a low at $2.543 per MMBtu. Natural gas went into the recent withdrawal season with the lowest level of inventories in years, and as the injection season gets underway, stocks are still at their lowest level in years. The supply and demand dynamics for the natural gas market in the US has changed dramatically over the past years, and one of the reasons is the technology that has caused the share price of Cheniere Energy (LNG) and others involved in the natural gas liquefication business to move steadily higher since early 2016.

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