Video Outlook: July 25, 2012
The combination of extreme heat around the country and nuclear outages has boosted demand for natural gas in recent weeks. We expect the inventory surplus will continue to narrow throughout the summer due to weekly underperforming injections.
Forecasts calling for above normal temperatures in consuming regions are supportive of prices; however, demand for natural gas might decrease as some utilities are likely to switch back to coal for power generation since economics favor coal at current price levels. Therefore, we have a neutral short term outlook on prices.
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