Tuesday, November 8, 2016

Slowest Start to Winter Heating Season in 7 Years for Natural Gas

Heating demand is well below normal through the first week of November.  This is easily the worst start to winter in over 7 years, with gas weighted HDDs at just 260 through Nov 6, against a 7 year average of 407.  

We normally see about 8% of our HDDs by this point in the winter, and the lack of demand is translating into a collapsing forward curve for natural gas, with Dec-Mar currently trading below $2.80, into a warm near term forecast.