A natural gas storage glut, expected to peak by September or October of this year, could send prices tumbling below $2 per mcf unless there is an unexpected blast of arctic air in the northeast. This warning comes from BENTEK Energy, an Evergreen, Colorado-based energy market analytics firm.
An abnormally warm winter throughout most of the country has led to much smaller drawdowns of gas supplies, while unconventional recovery methods have continued to increase the fuel's supply, according to a recent BENTEK paper. Sheetal Nasta, manager of energy analysis for the company, put it this way: "What we're seeing right now is largely weather driven." She added that the issue is more complicated than just that. "It's a combination of increased production coupled with a lack of weather-related events."
Nasta added weather events can change things very quickly. "It only took about two months of mild weather to take us from a storage deficit, year over year, to a huge surplus."
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