Natural Gas

We've seen the spread and underlying pullback over the last few sessions. There's been some extreme weather in the US which has been supporting prices.

From Dominick A. Chirichella of EMI

The main storyline for Nat Gas has been the ongoing heat wave along the west coast as well as the changing short term weather forecasts. For example in California residents are being asked to conserve energy for the second day in row as temperatures are soaring over parts of the western region of the US. 

The latest NOAA six to ten day and eight to fourteen day forecasts continue to be more supportive than those released late last week. The current round of forecasts are showing a modest area of above normal temperatures along the east coast along with an ongoing heat wave out in the west. 

The middle of the country is still calling for normal to even below normal temperatures. This set of forecasts does suggest that there will be a higher level of cooling related demand than the forecasts from last week. If the forecast holds and the actual weather turns out to be in sync with the forecasts weekly injections during the forecast timeframe could underperform versus history.

We'll keep an eye on this one over the coming weeks. It still has a decent seasonal window left to run.