The natural gas price surge was a combination of different events’ results. From the below normal level of storage to the pipeline issues that limited production recently. For the week ended July 9, working gas in U.S. storage was at 2.629 trillion cubic feet, down 543 billion cubic feet from the same time last year and 189 billion cubic feet below the five-year average, according to the Energy Information Administration.
With the demand remaining high due to the heat waves, the storage for next witer is a “key measure”, and the US market is about 20% below where it was a year ago and almost 10% under the 5-year average. The storm in February hit Texas, the nation’s largest energy-producing state, and the fruit’s temperatures led to high natural gas demand, but also caused production and pipeline issues. Supply is likely to remain flat, with demand highly dependent on the summer needs of the power sector over the next 45 to 60 days. Overall, the natural gas price will likely remain high for the foreseeable future.
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