However, market observers warn that natural gas demand will dip as the seasons change and temperatures cool. Some analyst are already warning of a potentially new record high natural gas inventory levels in the months ahead.
Still, natural gas may find further support as we head toward the winter months and heating demand rises.
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“In the short term, the National Oceanic and Atmospheric Administration (NOAA) is predicting a wet and cold winter as El Niño wanes and the Pacific cools this fall,” Patrick Gourley, an assistant professor of economics at the University of New Haven, told TheStreet. “Any large spike in natural gas prices, however, will be partially attenuated by the high inventories suppliers have from last year’s mild winter.”
Recent data showed natural gas storage levels revealed rose 36 billion cubic feet, compared to expectations of a 41 billion injection, a 51 billion cubic feet jump in late August and 72 billion cubic feet for the same period last year.
For more information on the natgas market, visit our natural gas category.
United States Natural Gas Fund