The Record Breaking Natural Gas Rally In Europe

1. China Power Crunch Indicate Underlying Weakness- Whilst power curbs are not a novelty to China, the fact that they are taking place right now and not during winter indicates that China’s readiness for the winter heating season amid low coal stocks and strong demand might be questionable. - At least two thirds of China’s steel production has already experienced power curbs this year as 11 provinces mandated production controls for H2 2021. - As output is constrained primarily in industry-heavy regions, the power cuts are pushing commodity…