Yesterday's natural gas storage report indicated an injection well below the 5-year average for the week, with total inventories dipping further below the crucial 5-year benchmark. Both short and long-term futures saw similarly slight gains, week-over-week. The 2021 summer strips in ERCOT and CAISO remain the most volatile, with California's seasonal futures rising 30% over the last month. While cold has persisted across the majority of the country over the last few weeks, a sudden early onset of unseasonable heat looms as the primary risk to drive upward market movement. Considering the consensus outlook for above-average summer heat, the opportunistic window for securing positions may be shrinking. Budget conscious customers looking for either near-term or long-term coverage will likely see best results sooner rather than later.
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