“A withdrawal from inventories would tell the market that winter is already here,” Tom Saal, senior vice president of energy trading at INTL Hencorp Futures LLC, said in the Bloomberg article. “We’re obviously seeing colder weather than what people remember from the latter part of last year.”
Commodity Weather Group LLC anticipates colder than normal weather across most of the eastern half of the U.S. Weather Derivatives calculates heating demand will be 20% above normal across the south-central U.S. According to the Energy Department, around 50% of U.S. homes use gas for heating.
“However it plays out, we are still seeing more blocking and cold air transport potential than what we saw last year at this time, which suggests continued significant year-on-year demand gains,” Matt Rogers, president of Commodity Weather Group, said in a forecast note.
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Max Chen contributed to this article.