Prices today (July 27) adjusted downwards, falling around ten cents from yesterday’s close at $4.102/MMBtu.
The move downwards was supported by modulating weather forecasts, which moved downwards for every region of the country, with the highest losses coming from the Midwest and the South Central states.
Latest forecast runs show some lingering possibility of cooler than expected temperature anomalies in the Northeast over the next week.
Much of this dissipates over Week 2, with lower than average temperature anomalies settling in the South and lower Midwest. In the last week, forecasts for Week 2 have gone down consistently, resulting in the loss of nearly 23 Bcf of demand from its initial forecast.
Having said that, this week is still anticipated to be the hottest on record for the summer (according to yearly seasonal tendencies). The GFS forecast for Week 2 is displayed in the chart.
Source: Gelber & Associates