The numbers are high.
No need to state the obvious regarding high energy costs however here we are on July 19th trying to anticipate where we’re headed. Numerous factors are at play other than worldwide unrest.
This summer’s record heat across the nation continues with NatGasWeather’s 15-day weather models calling for “the greatest number of cooling degree days (CDD) over a two-week period of the past four decades.” Longer range weather maps for early August call for hotter than normal temperatures to continue. Electricity use will be substantial and natural gas is used extensively by power generation plants to produce additional electricity to meet surging demand. This indicates higher electricity rates and higher natural gas futures pricing.
Regarding natural gas in storage for upcoming winter, we are 10% below year ago levels and 12% below five-year average. With hurricane season ahead, and should we experience an active season, this assuredly will drive pricing even higher. We continue along in uncharted waters.
Regards,
John Thomas