Much of the near-term pricing analysis for natural gas in energy literature today points to the fact that as August winds down cooling loads will likewise lessen and natural gas storage will continue to build toward a strong pre-winter position—all moderating factors in price expectations.
On the other hand, more gas to power generation seems to be price-induced and structurally built in to gas markets—factors that would seem to point to price increases once winter demand loads begin. Pricing bulls and bears, bears and bulls. Similar tugs in both directions have led to relative stability in Henry Hub pricing this summer.
Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.
Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.