Natural Gas Prices Reach ‘Turning Point,’ with Possible Rally into 2021, Says BofA

Lofty summer heat in July, with forecasts for more by mid-August, should further ease pressure on storage injection levels as industrial energy demand shows signs of increasing and global economies emerge from coronavirus-imposed lockdowns, BofA Global Research analysts said.

Analysts including Peter Helles said gas had reached a “turning point,” and they also anticipate European and Asian demand for U.S. liquefied natural gas (LNG), depressed for months by the shocks of the pandemic, will recover this year and ramp up in 2021.  

“We expect injections to slow in the coming months to avoid end of season congestion — barring a very mild rest of summer — and thus do not see much further downside to front month prices from here,” the BofA analysts said.

U.S. storage...