Natural gas spot and futures market prices have turned toward the downside the past two weeks, driven in part by mild weather that has led to soft demand, a fact reflected in demand volumes in the low 50 Bcf per day range, currently only slightly above last year’s volumes. Meanwhile, production remains elevated and consistently strong, so near-record volumes of gas directed into storage are now above the five-year average and close to the all time record set last year.
The range of market indicators suggest an environment that will be able to supply adequatevolumes of gas to meet demand this winter heating season. This trajectory could change, certainly, as major events such as gulf-related supply disruptions are possible as the hurricane season is not officially closed yet (although no tropical storms or hurricanes are currently identified in the Atlantic). That said, the fundamentals point to a strong domestic supply position as we head into higher demand winter months.
Visit this link to download the full Natural Gas Market Indicators.Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.