(Gelber) Following yesterday’s break lower, the market is fighting off another complete collapse today as the August contract rebounds about three cents to $1.67/MMBtu.
Despite the bounce back at the front, weakness persists further out on the curve where upcoming winter and 2021 calendar year contracts are all tilting to the downside.
Natural gas-fired power demand has risen to all-time records over the past week, with recent estimates placing the seven-day average at 44.8 Bcf/d (see chart).
Demand will ease away from this peak as temperatures moderate this week, although it should still stay relatively elevated above last year’s power burn levels.
Source: Gelber
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