Much Lighter National Demand This Week, Increasing Next Week

Written by on July 22, 2019 in NatGasWeather - No comments

Monday, July 22:  National demand will plummet today and Tuesday as the recent heatwave rapidly fizzles as a strong cool front with showers and thunderstorms with highs of 70s and 80s sweeps across all states east of the Rockies besides portions of the far southern US. This will drop national power burns from near 43 Bcf/day during the recent heatwave to closer to 37 Bcf/day for a several day stretch this week. As cooling arrives east of the Rockies, hot high pressure will build over the West with highs of upper 80s to 100s becoming widespread, hottest over interior California and the Southwest and where the core of the heat dome will remain through the end of July. High pressure is expected to restrengthen across the central and eastern US next weekend into the start of August with national demand increasing. Prices are higher today, likely aided by a little hotter weekend trends for the start of August. But is it really all that intimidating? Not likely unless there were to be a little further hotter trends, which is possible and needs watching.
 

The pattern for Monday and Tuesday is for a strong cool front with showers and thunderstorms to sweep across most states east of the Rockies for much lighter demand.

The recent heatwave will fizzle as much more comfortable highs of 70s and 80s arrive east of the Rockies besides the far South.


 

Monday: The pattern this week is going to be rather bearish with cooler than normal conditions sweeping over most states east of the Rockies for much lighter demand. The West will be quite hot with upper high pressure building over. The image shows temperatures vs normal averaged over the next 7-days and not intimidating at all east of the Rockies. The data did ternd a little hotter for next week into early August, which could have aided a couple cents of today’s gains, but it seems other reasons could be important with prices solidly higher so far this morning.

 

A much warmer patter is expected for late July and early August. But is it really hot enough to intimidate. Not likely, but did have a little hotter trends which could be why prices are up today.

 

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