US Natural Gas Storage Situation Tightens as Summer Heat Fades
The US natural gas storage picture is tightening as the summer heat begins to ease. According to Natural Gas Intelligence (NGI) calculations of NOAA data, cooling degree days (CDDs) fell to 61 from 72 week/week last week. However, this relief may not be enough to prevent a tighter storage situation.
NGI is projecting the latest US Energy Information Administration (EIA) Weekly Natural Gas Storage Report for the week ended Sept. 21 will show an injection of 56 Bcf, which would expand the deficit to last year to 143 Bcf with just six weeks left before the start of the winter heating season.
Spot market prices in the US Southeast reacted accordingly, with NGI's Weekly Southeast Regional Average gaining 38.5 cents to $3.945 last week, easily the largest increase among the 12 domestic regional averages in our survey.