Moreover, some argue that natural gas demand for electricity generation could be even higher this summer after more power producers shifted away from coal to burn much cheaper natural gas.
On the supply side, observers anticipate output to dip from near-record levels as the low prices force producers to shut down rigs and slow their work. The supply outlook is already diminishing as the number of working rigs has recently dropped to historic lows – Ritterbusch and others, though, have warned that the lower rig counts have yet to translate to lower production.
Total U.S. natural gas inventories were at almost 2.5 trillion cubic feet, or 58% higher year-over-year and 42% above averages for this time of the year.
United States Natural Gas Fund