Late May and June tend to be the strongest period for underground storage injections and that strength is beginning to show. Storage injections this year are rapidly
catching up with the five-year average, however, injections could be tempered by near-term natural gas demand for power generation, particularly during July and August. Toss in expectations for an active hurricane season and counts of gas-directed drilling rigs and the formula for what makes summer markets begins to take shape.
On the supply side, record daily production levels seem to have leveled off. However, what was a record last year in overall natural gas demand, according to the Energy Information Administration, is already being surpassed by about 4.5 percent year-to-date.
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