Thursday, August 01, 2013
With US natural gas storage inventories already at 2.845 Tcf with three months left in the refill season, estimates for season-ending levels may need to be revised upward if forecasts for milder weather come to pass, analysts said this week.
Summer came in like a lamb and may exit the same, but overall the weather has "just not been as hot as last year," noted analyst Martin King at FirstEnergy Capital.
As a result, gas storage injections have trended above the five-year norm except for a few weeks of anemic builds in July when a heat wave blanketed key consuming regions.
"We have moved past the climatological peak of summer, and the 14-day forecast does not indicate any significant heat for the US through the first half of August," said Logan Reese, analyst at Platts unit Bentek Energy. "We may still see a week or two of hot temperatures, but there is little to no chance for any sustained heat, and above-average temperatures in September cannot create significant demand like it can in July or August."
For the rest of this article, go to www.platts.com.