• Hot weather is expected in the next two weeks and the impact on the natural gas storage surplus will be important for prices for the remainder of the year.
  • The natural gas storage surplus relative to the five-year average continues to fall. While the rate has been slower than market expectations, the trend supports rising prices.
  • The drop in the surplus and the expected hot weather support prices. Note the surplus is still large so the rate of gain will probably remain slow.
  • An outage to a facility in Norway caused NE wholesale natural gas transportation basis to increase by $.11/MMBtu. The outage has been resolved, so NE wholesale basis should fall off in the next week.