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US gas bulls beware

US gas production has been stronger than expected. The market will be hoping for a scorching summer and a quick ramp up of LNG facilities

The market has turned against US gas price bulls, again. Production is rising again from key shale plays. The power burn is lower than it was last year. Stocks remain near their five-year highs thanks to a relatively mild summer. New export capacity ramping up in the second half of the year will soak up some of the glut, but the market's focus is likely to remain fixed on the healthy supply side of the ledger. The Appalachian Marcellus and Utica shale plays have led the output recovery. Combined production from the two prolific shale plays topped 24bn cubic feet a day for the first time ever in July, close to a third of total US gas output, after growth stalled in 2016. Production from the

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