For the second consecutive week, the Energy Information Administration indicated an injection of 71 Bcf into natural gas storage, leaving total inventories 4% below the 5-year average. This week also brought with it a glimpse of summer heat.
The remainder of the 2021 strip continues its slow, but steady ascent in most territories, led by CAISO, where the summer strip continues to gain ground on a weekly basis. This week saw very minimal movement in the outer year strips, with backwardation remaining steady in CAISO and ERCOT. Longer-term positions in NY continue to come at a premium.
With cooling degree days making their arrival, the market will likely be more and more sensitive to any updates to those forecasts. The outlook for budget-conscious customers to secure long-term coverage remains favorable, however the ideal buying window may begin to close if summer heat delivers as expected.
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