Hot Weather Limiting Storage

The east coast is experiencing a nice, warm start to autumn. Temperatures will be in the lower 80s for most of New England this weekend.  This will be the last chance to catch some rays on the beach! Warm weather has occured over the past week for most of the country.  See the temperature anomalies below:noaa, composites, temperatures

Natural gas traders have been following the warm forecasts closely.  Prices began to rise from nearby lows on September 11th.  Forecasts accurately showed a strong ridge over most of the country.  Warm temperatures cause above normal cooling demand, leading to greater natural gas consumption.  Prices have since ‘cooled off’ from the highs, given the latest forecast of more seasonable weather in the 11-15 day range.  prices, natural gas, futures

Over the next week, above normal temperatures are expected for the eastern half of the country. After that, below normal temperatures are forecasted.


Will the abnormal warm weather really give way to cooler temps as models suggest? How will natural gas react? For information about how to trade weather in the natural gas market and the ‘best’ long range forecasts available, email

Another fundamental factor affecting the market is the current storage compared to previous years.  Current levels are much lower than at this time last year.  We are more similar to 2015 and 2013.  The October and November weather will determine where we end the injection season.




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