Natural Gas: Recovery looming in the second half of the year – Rabobank

Strategists at Rabobank continue to see meaningful upside to natural gas spot and forward prices in the back half of this year.

Key quotes

“We expect June will mark the bottom for LNG prices as a wave of US LNG cancellations are currently expected given the very poor current regional economics but we also expect that these low prices will spur new demand for generations to come.”

“We see a recovery looming for LNG markets in 2H20 as supply comes down rapidly while demand begins to recover sharply from the virus-driven lockdowns.”