The Scoop – Our hearts, thoughts and prayers go out to the people recovering from Harvey’s wrath. From an energy perspective the storm reduced demand by 10%, down 1.8 Bcf/d, compared to August of 2016.
Now on the end of summer, reflecting on the break most have seen from the weather has caused a relatively flat market. See below chart as the year has been a very mild year, thus causing prices to stay depressed.
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.