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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NATURAL GAS
Latest weather forecasts are calling for the heat wave across Texas and the Southeast to presist through mid-August, supporting power demand for cooling and tightening in gas market fundamentals for the South-Central region according to S&P Global Commodity Insights.
- Latest weather forecasts for the southern regions ranging from Texas to Florida suggest temperatures well above the seasonal norm for the coming week, AccuWeather data showed.
- Since the start of August, gas-fired power demand in Texas has risen sharply and hit a record high of more than 8.5bcf/d on 4 August. Last summer, gas-fired power demand in Texas topped out at just under 8.3 Bcf/d. Over the coming seven days, Texas burns are forecast to average just under 8.2 Bcf/d.
- Across the Southeast, power burns have trended below record highs set last summer in the mid- to upper-15 Bcf/d range. Still, in July, Southeast power burn averaged over 14.2 Bcf/d and accelerated to nearly 14.5 Bcf/d over the past two weeks. Power demand for the Southeast should remain elevated over the short term, averaging nearly 14.2 Bcf/d through mid-July.
- With hot weather and strong gas-fired power demand persisting over the past weekend—and now likely into mid-August— it is possible that additional withdrawals from South-Central storage could follow in the weeks ahead, further narrowing the surplus in a steady tightening for regional market fundamentals.
- US Henry Hub prices have edged lower today but are holding steady since yesterday around highs seen on 25-26 July of around $2.7/MMbtu, supported by higher demand.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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