BOIL

EIA Natural Gas Inventory: -18 bcf vs. -18 bcf consensus, +31 bcf last week.Futures ([[NG1:COM]] -1.6%)ETFs: [[UNG]], [[BOIL]], [[KOLD]], [[UNL]].

KBR ([[KBR]] +3.1%) sprints to a nine-month high after Venture Global LNG awarded it the engineering, procurement and construction contract for the 10M metric tons/year phase 1 Plaquemines LNG liquefaction

Gainers: Ultrashort Natural Gas Proshares (KOLD) +22.4%.Microsectors U.S. Big Oil Index 3X ETN (NRGU) +18.0%.Retail Bull 3X Direxion (RETL) +17.1%.Ipath Cocoa Subindex TR Sm Index ETN (NIB) +16.0%.Etracs Monthly 2X Diversified Bus Dev

Natural gas futures (NG1:COM) -8% to $2.757/MMBtu, by far the worst performer among major commodities, as milder autumn forecasts cause concern that a warm winter will crush heating demand.The U.S.

Weather will still matter, but the fundamental deficit will skew the risk/reward to the upside.The 2019/2020 winter was the exact opposite of what we will see for the 2020/2021 winter.Last year, we were oversupplied by 3-4 Bcf/d, while this year, we will be undersupplied by 5+ Bcf/d.This large difference means that even if the weather outlook was just normal, the price reaction will be bullish.For us, we think natural gas producers are the best ways to play this incoming natural gas rally. We believe the 2021 curve is undervalued despite the recent rally and the 2022 curve should also be around $3. With NG producers over discounting the curve due to fear of overproduction again, we think they are a good reasonable risk/reward bet today.

The natural gas market has a lot of things going well so far with the exception of the early November weather forecast.Now aside from the bearish weather that's coming, the physical market has really tightened up in the last few days with Henry Hub cash now trading over $2.8/MMBtu.LNG exports, which was delayed last week, are finally now getting close to ~9 Bcf/d with this psychological figure hitting by this weekend.On the production front, all of the shut-in gas production is now back online with the average coming in around ~88 Bcf/d. But as you can see from the recent production trend, the initial jump from wells that were shut-in will subside, and we expect Lower 48 production to trend back loser by November. We still maintain our view that Lower 48 production should be closer to ~86 Bcf/d.So to sum up the current market dynamic: 1) Cash market firmed up with LNG exports returning and physical market balance improving. 2)Weather outlook is bearish for early November, which will limit the upside in natural gas futures. 3) Production is set to keep declining into year-end setting us up for a very bullish 2021.

Natural gas stockpiles rose by 49 bcf.Approaching a record high in inventories with four weeks to go in the injection season.Natural gas makes a new high.Politics over the next few weeks is the most significant factor for the energy commodity.Support and resistance levels for traders - Futures are the best route; BOIL and KOLD provide an alternative.

Natural gas futures (NG1:COM) closed +3.8% to its highest settlement since January 2019 as forecasts continue to predict colder weather while liquefied natural gas feedgas flows tick higher.The latest 6-10