Escalating supply concerns ahead of the summer – forecast to be hotter than usual – appear to be driving huge increases for June baseload natural gas prices, according to NGI’s Bidweek Alert (BWA).

After late-season blasts of wintry air hampered production in April, producers are struggling to grow output beyond the recent low to mid-90 Bcf/d range. Production estimates had finally topped 95 Bcf/d earlier this week, but ongoing maintenance quickly pushed volumes down.

At the same time, demand is starting to ramp up as early season heat grips the southern United States and, at times, the Northeast. Forecasts were calling for a bit of a reprieve over the next couple of weeks, however, with near-normal temperatures expected during the period.

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