This week usually ends the natural gas withdrawal season, as spring weather typically reduces the amount of natural gas needed to power the United States. However, with cold weather still affecting large metropolitan areas throughout the U.S., in addition to an atypically cold winter season, natural gas storage is on pace to reach its lowest level in a decade. With an estimated 2.8 trillion cubic feet needed to replenish natural gas storage to its five-year average, prices could remain at elevated levels this summer. This could be the break natural gas producers have needed.
This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.