Nat-Gas Prices Surge on Warm Forecasts
Natural gas prices closed higher on Wednesday as forecasts remain warm.
The Midwest and South are expected to experience hotter-than-average temperatures for August 17-21, while the West will see above-normal temperatures from August 22-26, according to Vaisala forecasts.
This positive news is somewhat offset by bearish factors, including the US Energy Information Administration's (EIA) projection that US nat-gas storage levels will swell to 3,985 bcf at the end of October, a 10-year high and 5% above the five-year average.
Additionally, Energy Transfer announced last Tuesday that the Hugh Brinson pipeline will operate at its full capacity of 1.5 bcf/day by September 1, allowing more gas supplies to flow from the Permian Basin to the US benchmark Henry Hub in Erath, Louisiana.