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Western Markets Supercharge Natural Gas Forward Curve Amid Dangerous Heat
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Natural Gas Inteligence News Feed
Resilient summer heat is finally lifting the forward curve, with trading volume ticking higher in some parts of the country amid record power burn and forecasts calling for more hot weather.
Natural gas-fired power burn hit its highest level in 11 months last week and forward traders responded by sending the curve higher now that summer heat has finally kicked into full gear.
Indexes in the West and Southwest led the forward curve higher.
Otherwise, ample domestic production and flagging LNG feedgas demand amid ongoing maintenance work have kept spot and forward prices in check most of the summer.
Storage inventories are above the five-year average and expected to finish the injection season at sufficient levels to meet winter demand.