Even with High Temps, NatGas Prices Remain Low Due to Inventory

Last Friday, Morningstar DBRS published a commentary titled, "Record-High Temperatures Boost Power Demand but Ample Gas Inventories Prevent a Bigger Jump in Prices" (full copy below). Since early March, U.S. and European natural gas prices have climbed steadily in the anticipation — and eventual onset — of much warmer than normal early summer temperatures even as producers curbed supply to contend with the glut built up during the past mild winter. Although U.S. and European gas storage inventories have been drawn down from early 2024, they remain high for this time of year. Large inventories are preventing prices from moving higher, says Morningstar analysts. It's classic economics --- more supply with the same demand equals lower prices.

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