Though intense heat remains in the cards for the balance of summer, near-term forecasts shifted cooler over the weekend Analysts said still-strong summer temperatures should continue to drive exceptional levels of cooling demand Weak liquefied natural gas demand remains a stubborn headwind Though intense heat remains in the cards for the balance of summer, near-term…
Articles from Summer
U.S. electricity demand is expected to total 998 billion kilowatt hours (kWh) between June and August, a 5% decline compared with the same period last year and the lowest level of summer electricity consumption the country has experienced since 2009, according to the Energy Information Administration (EIA).
Electric grid operators in the Northeast will have no problem meeting summer demand even in the most extreme weather conditions as new supplies, including natural gas-oil generation plants, and demand-response resources enter service.
Summer Preview: South Central Region Sending Natural Gas Into Uncharted Waters This Injection Season
Perhaps more than ever, all eyes will be on the South Central region for natural gas markets this summer as robust associated production from oil wells and a projected doubling of natural gas exports will propel the market into uncharted waters. Factor in the need to refill historically low storage inventories and the potential for a major storm to hit the Gulf Coast, and the market is ripe for significant — though likely brief — price volatility.
June natural gas is set to open 2 cents higher Wednesday morning at $3.25 as traders study weather forecasts calling for concerted summer heat as well as Thursday’s anticipated lean inventory report. Overnight oil markets rose.
Henry Hub prices could see upward pressure later this summer as the current supply/demand balance erodes a roughly 300 Bcf storage surplus to the five-year average by August, according to analyst firm PointLogic Energy.
After natural gas markets failed to bat an eye at last week’s historic storage withdrawal, it’s no surprise to see forwards markets plunge by double digits this week.
Natural gas forwards markets tacked on another 20 cents on average between June 3 and 9 as market players were thrown by this week’s reported storage injection from the U.S. Energy Information Administration, according to NGI’s Forward Look.
Natural gas prompt-month forward prices posted double-digit gains between May 27 and June 2 as strong cash, bullish storage and supportive weather amped up the market, according to NGI’s Forward Look.