Natural Gas Market Conditions
As expected, summer temperatures were above normal in North America. However, the magnitude and duration of heat events came as a surprise, particularly in the southern regions of the US. This context significantly boosted demand for natural gas to power air conditioners.
Strong natural gas consumption used to support electricity, combined particularly with natural gas production that is increasing and more resilient in the face of low continental prices and also regional prices in certain production basins, has put significant pressure on the natural gas market. By reducing the rate of summer injections, storage facilities were able to absorb the shock and contain the potential upward pressure on natural gas prices in key North American markets.