This seems to explain why BOIL did not fall in lock step with $NatGas yesterday. Natural Gas Falls Sharply In Healthy Pullback After Largest Monthly Rally In 11 Years As LNG Export Plants Remain Shuttered & Early-September Temperature Outlook Cools; Oil Rises Ahead Of Expected Bullish EIA-Reported Storage drawdown In Today’s EIA Status Report; Gas Demand To Rise Today On Plains Heat With Storage Surplus Set To Fall Below +400 BCF For The First Time Since May 6:00 AM EDT, Wednesday, September 2, 2020 After natural gas abruptly reversed a nearly 6% intra-session loss on Monday, prices again fell sharply on Tuesday but, this time, the commodity stuck the landing. October 2020 prices settled down 10 cents or 3.9% at $2.53, finishing near session lows. However, the losses were largely restricted to near-term pricing with the November contract falling less than 1%. The pullback seems to have been driven by a combination of profit-taking at the beginning of the new month, continuing LNG demand losses, and a cooler temperature outlook for early September that will suppress late-season powerburn. This pullback was long-overdue and a healthy development following a +50% rally during August, the largest since 2009. Until the Sabine Pass and Cameron LNG export facilities see a return of volumes, I would not be surprised to see prices pull back further to the $2.25-$2.50/MMBTU range. However, once the plants are back online, LNG export demand will likely surge higher throughout September which, coupled with year-over-year production losses that are now exceeding 5 BCF/day, will result in a tightening supply/demand imbalance that will limit the magnitude and duration of any losses. Long-term I remain as bullish as ever and expect natural gas prices to top $4.00/MMBTU this winter. So, with this piece of information, and the weather maps, I will not be looking for any further decline in BOIL, and buy back into it today. GLTY