Midwest Natural Gas Supply Remains Vulnerable to Hot Summer, Competition

While at generally healthy levels, natural gas storage in the Midwest held slightly below historical norms through late May. This left the heavy gas-consuming region vulnerable to any surges in summer cooling demand as well as overall competition, given robust demand for U.S. exports.

The prospect of more widespread domestic heat in June and the culmination of spring maintenance at LNG terminals points to increased consumption in coming weeks.

“Higher prices become more likely as LNG demand returns and power burns rise as summer approaches,” said EBW Analytics Group senior analyst Eli Rubin.