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Bank of America Merrill Lynch expects US natural gas prices to stay constrained by oversupply over the next few years. US gas stocks were about 519 bcf above the year-earlier level in mid-October, and the bank sees storage possibly reaching a record 4.2 tcf by 2021.
The bank also lowered its 1Q20 price forecast, citing a weak coal market that caps gas prices.
Persistent oversupply and record storage limit the upside for gas prices even if winter turns cold. A mild northern-hemisphere winter could push prices lower still.
oilprice.comNick CunninghamOct 30, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
