The prospect of a significantly warmer than normal summer given a strong La Nina developing in the Pacific Ocean, which may trigger a surge of natural gas to power generators, and a continued view of an active hurricane season for the Atlantic basin seem to be the key near-term influences that gas market analysts recognize today. Throw in the critical issues surrounding the gulf oil spill and you have a recipe for uncertainty for the cooling season that is upon us.
Those market elements and near-term uncertainty are not new. What is new is that market prices and the future view of natural gas acquisition prices (out 18 months or so) reflect stability. The strength of the current supply picture answers the question of how that is possible.
Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.