As natural gas traders and investors focus on the shift from withdrawal season to injection season, the focus will now turn to the summer cooling demand generated by summertime temperatures.
According to The Old Farmer’s Almanac, the summer of 2015 will be very hot for most of the continental U.S. The majority of the heat will consume the Midwest and South where hot and dry temperatures are likely to drive summer cooling demand in Texas and Louisiana.
According to the U.S. Energy Information Administration, Texas and Louisiana were the first and third largest state consumers of natural gas at 4.02 Tcf and 1.40 Tcf in 2013.
Interestingly, The Old Farmer’s Almanac also predicts a cooler summer for most of California. The state as well as other areas of the West largely experienced above average temperatures throughout most of the winter.
Likewise, the forecast shows only a small area of California experiencing wetter conditions. If true, this lack of rain will likely only exacerbate the severity of California’s three-year drought.
Natural gas prices for May ’15 delivery traded lower on Monday, down 7 cents at $2.642 per mmBtu.
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