Reasonably strong daily volumes of natural gas to power generators that reached 32 Bcf per day and more cut into storage injections during July, however, market price movements have remained docile. The hurricane season tends to be concentrated in late August and September, so the potential for supply disruptions is not over but the current NYMEX pricing strip points to price stability for the balance of the summer.
Regarding natural gas demand, natural gas to power generation and industries are both up over eight percent year-to-date in 2010 compared to 2009, remembering that ’09 demand went into the tank with the economic recession. Overall U.S. gas demand is up about 3.6 percent in 2010 but, as noted above, the slight surge in consumption has not upset current or near-term acquisition price expectations among indices and analysts.
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