The winter heating season is now behind us, but cooler temperatures have lingered this month, driving some extra heating demand as a result – residential and commercial demand was up 54 percent for the month compared with April 2010. As a result, the extra demand has likely slowed down injections into storage, which for the first two weeks of April were about half of the volumes recorded during the same time last year.
Amidst this demand picture, natural gas spot prices remain in a stable position, hovering around levels now maintained for the past three weeks. What does this mean? It indicates that our supply position remains robust with adequate production to meet the lateseason demand while the market still makes its turn toward storage buildup.
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