The Scoop – Last week Hurricane Irma caused a 4% drop in demand as 67% of the power plants in Florida use natural gas as their fuel source. (See Chart Below) The lowering of demand, mild weather & huge injections have led to pricing staying flat. Winter weather predictions are the next major risk to price inflation, so stay tuned.
Strategy Advice – The EIA raised its price projections for ’18. Consumption growth prediction is 1.8% higher than ’17 mostly due to a colder winter assumption. Also, rising LNG exports due to Cove Point Maryland facility & Cheniere’s Sabine Pass 4th train being fully operational. This year is the year to lock up long term.