September 10, 2021 – Natural Gas Intelligence
Searing Western Heat, Supply Woes Bolster Weekly Natural Gas Prices
By: Kevin Dobbs
National output, which had averaged near 92 Bcf/d during the summer months, struggled to top 90 Bcf through most of the trading week, as producers struggled to assess and address Ida-imposed damage. Throughout the week, three-fourths of natural gas in the Gulf of Mexico remained shut-in, according to Bureau of Safety and Environmental Enforcement estimates.
Ida “amplified already-heightened supply fears,” said RBN Energy LLC analyst Sheetal Nasta. “The shut-ins are exacerbating an already tight market.”
She noted strong domestic demand and near-record levels of U.S. liquefied natural gas exports throughout the summer. This developed as production, pre-Ida, held lower than levels prior to the coronavirus pandemic. As a result, utilities have injected below-average amounts of gas into storage, leaving inventories potentially light should the coming winter prove exceptionally cold.
“Those underlying fundamentals will remain a trigger point for price spikes well after Ida-related shut-ins recover,” Nasta said.
Read the full article here: https://www.naturalgasintel.com/searing-western-heat-supply-woes-bolster-weekly-natural-gas-prices/
