Natural gas provides a more favorable view domestically, while providing constrained conditions globally. U.S. working natural gas in storage increased to 3,117 billion cubic feet, rising by 33 billion during the week ending July 31. The five-year average surplus expanded by 195 billion cubic feet. Storage builds have been supported by strong production and aggressive LNG feedgas demand, despite summer demand from the power sector. In the rest of the world, the conflict in the Middle East has continued to impact loaded LNG supply resources, which leave ports worldwide.
The International Energy Agency speculates that demand for gas globally will slightly decline. In the Gulf, where LNG demand is negative, new resources in North America, Africa, and Australia, will keep the overall demand for LNG relatively the same, unless there are further delays in recovery in the remaining countries.
