Weather Forecast now very bullish for natural gas

[dan_s]

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High pressure in the upper atmosphere over the Artic is pushing down on the very cold air under it. Asia and Europe are having one of the coldest winter in decades and the cold is now rotating over North America. The last two weeks of January are now expected to be much colder over most of the U.S. If we get back to back weeks of 200 Bcf draws from storage that should push gas storage back to the 5-year average much earlier than expected. As I explained in my Saturday podcast, demand for U.S. natural gas is much higher than it was five years ago, so we really need higher storage levels.

If natural gas storage is under 1,700 Bcf at the end of March, gas prices should remain much higher than they were in Q2 and Q3. Refilling storage before next winter will be difficult over this coming summer.