Thursday, June 27, 2019 at 4:19PM
After a run of six consecutive weeks with a reported natural gas build over 100 bcf, the streak finally ended with today's EIA report that showed we injected 98 bcf for the week ending 6/21. This turned out dead-on with the estimate that we had held since the start of this week, outlined in our Monday weekly report. While the build was well above the 5-year average build, it was reflective of much tighter supply / demand balances than we have seen for a long time, as the higher number was more a product of just being in a lower demand weather regime. Many parts of the country saw cooler than normal temperatures, limiting natural gas demand. The confirmation of tighter supply / demand balances helped prices stage a rally today, with the new prompt month August contract rising nearly 2.5% on the day. Forecast demand is also on the increase, with much more above normal temperature coverage in the near term, boosting natural gas demand. The longer the hotter pattern lasts, the more prices can continue to advance higher. Our latest research can keep you up to speed on that topic as well as others that will influence the movement of natural gas prices. Sign up for a 10-day free trial here to take a closer look at all of the products we have to offer.