Summer temperatures have climbed and natural gas use from generating plants has followed. (See chart below) On July 19th, we reached our highest daily level at 39 billion cubic feet (Bcf). This should push prices up, but supply has been ample.
Strategy – Pricing on short term deals compared to long term deals are almost flat. A lot of anticipation of future pipeline expansion and natural gas production has caused risk expectations to be minimized, thus great pricing on long term locks.