Working gas in underground storage is above 3.8 Tcf and recent days have demonstrated record volumes of gas production in the United States (67 Bcf per day). It looks like winter is just around the corner.
The current six-month forward strip at Henry Hub is consistently in the $3.60 range and on the consumption side overall demand is within six-tenths of one percent with that of last year. Sector demand has been redistributed with less gas to power generation and more to seasonal residential and small commercial loads compared to 2012.
So what’s next ladies and gentlemen? Why heating degree days, of course. How many, where they occur and how long they are sustained will, to a large extent, dictate the market during the 2013-2014 winter heating season.
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.