Thursday Mid Day Pattern Update

Written by on May 22, 2014 in NatGasWeather - No comments

May 22nd, 1:45 pm EDT

 

Mid-Day Update: Not much insight gained from the data coming in today. Conditions are on tap to set up warm for the next two weeks but not overly hot. The southern US will drive some cooling demand with highs in the 80s to lower 90s, with 100s in the Southwest deserts. However the pattern is not going to be quite hot enough to be of serious concern to the nat gas markets. Until the threat of widespread heat looks more promising, prices will likely have a difficult time finding support. We do continue to see signs hotter temperatures are possible for the second week of June, which could cover a fairly large portion of the US. However, the big market players will not be hearing anything convincing of more impressive heat and until then, weather patterns will be viewed as favorable for coming builds to gain on the supply deficit. But we are still well over 900 Bcf still in the hole and making it up a nickel and dime at a time will not make up ground very quickly. At some point this will again weigh on the market and likely when the first prolonged heat wave is hyped.

 

 

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