According to information from the Dow Jones Newswire, natural-gas futures settled at a one-month high Friday, boosted by expectations for hot weather in the coming weeks. Electricity rates are trending higher with gas.
The heat wave in the Midwest and expectations for another round of above-normal temperatures in the East helped lift futures.
Demand for natural gas tends to increase with hot temperatures in the summer as more of the power-plant fuel is needed to generate electricity to power air-conditioning. Natural gas accounts for about a quarter of U.S. electricity generation.
According to EIA estimates, working gas in storage was 2,611 BCF as of Friday, July 8. The 84 bcf build was higher than most analysts were estimating. The 84 build reduced the deficit to 218 BCF, the least since late April, though inventories remain roughly 50 Bcf under the five-year-average.
|EIA report for week ending 7-08-2011|