Lower than normal hydro-electric water reservoir levels in some western states paint a picture of less hydro-sourced power generation this summer and may indicate the need for more natural gas into power for the region.
That aside, supply fundamentals remain strong with an extraordinary storage position (2.0 Tcf) at month-end April and only modest year-to-date increases in large-volume customer demand (industrial 2.7 percent and power generation 3.0 percent) compared to that of 2009.
The current NYMEX futures strip is also one of relative stability with the first $6.00 per MMBtu forward price not showing up until December 2011.
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