Summer heat puts a crimp in the natural gas supply build
Last week’s surprisingly strong 120 bcf per day weekly EIA build number gave way to a more modest 65 bcf, about half the prior week’s level.
Hotter summer temperatures are settling in across the country for July with summer in full swing. Although stocks of gas in underground storage are still climbing, higher demand for electricity for air conditioning use will likely push build to a more modest pace while temperatures remain on trend. We will likely challenge the upper end of the historical five-year stock range by late summer—barring anything unusual.
As the expression goes, “rain makes grain,” but not without enough growing degree days. Overall, conditions look mostly favorable as evidenced by 73 percent of corn rated good to excellent across 18 states.
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