Cold Winter

Two short years ago at the end of March 2012 natural gas marketers despaired of ever finding a home for surging natural gas production after a historically mild winter left underground gas storage bursting at the seams. A week later in April 2012 natural gas CME NYMEX Henry Hub prices dipped below $2/MMBtu and producers started shifting their drilling rigs to wet gas and liquids plays in search of higher returns. Fast-forward to today and we move towards the end of another record winter – this time a freezing cold one. Last week gas prices climbed over $6/MMBtu and the gas storage gauge will likely be close to empty (metaphorically speaking) by the end of March. Today we provide an update on this winter’s gas market.

Last week (May 3 2013) a very late winter snowstorm crossed the Rocky Mountains into the upper Midwest, dropping over a foot of spring snow from Colorado to Wisconsin.  So-called winter Storm Achilles smashed snowfall records across the Upper Midwest. The storm was only the second May snowstorm on record for Kansas City and Des Moines.  Today we look at the impact of this year’s late winter weather on energy markets.