6-10 DAY AND 8-14 DAY OUTLOOK
Look for cooling demand to increase as a large heat wave moves across the U.S. in the 6-10 and 8-14 day forecasts. The entire country will see higher-than-normal temperatures except for a small area centered around Kentucky and stretching to the Atlantic, but even the Northeast and the Gulf Coast will surround it with warmer temperatures.
PJM AD HUB ELECTRICITY VS HENRY HUB PRICES
The market has dropped sharply since Thursday, when it closed at $2.85, its highest level since January. The June market dropped $0.30 cents over Memorial Day weekend, mainly because market investors sold off and collected profits. As we switch to the July prompt month, the market sits at $2.79. Market investors could send it up just as sharply starting Tuesday.
Another factor in the increase in gas and electricity pricing was the announcement by the Freeport LNG facility that all three LNG trains should be operational soon. Freeport has experienced outages since January, with its natural gas intake down to just 5% of capacity at one point. This announcement means that the second-largest LNG export facility on the Gulf Coast will soon be running at full capacity.
NATURAL GAS PRODUCTION
With the drawdown in natural gas production, the surplus we have enjoyed since early 2023 is beginning to shrink. The 5-year average has shrunk from 30% to 28% surplus, and we are 17.8% over last year’s supply after being almost two percent higher this past week.
NATURAL GAS STORAGE
DRY GAS PRODUCTION VS PRIOR YEARS AND PROJECTED
