A confluence of extreme weather, low storage supplies, high U.S. demand, increased LNG exports, and flat production have led to sustained price rallies that are defying expectations.

Natural gas generators have been in high demand to power cooling loads and supplement parched hydropower markets. Booming exports and more steamy weather will keep supplies down and prices up.

With record heat and drought conditions, pricing has focused on near-term weather and expectations for both strong domestic demand and U.S. exports.

With growing concerns about drought conditions in the West and the potential for a warmer than normal summer, prices will remain elevated in the near term.

Low storage injections and early hot-summer forecasts along with continued strength in LNG exports are supporting the gas market in recent weeks.

As the U.S enters the natural gas injection season, short-term (12-month) contracts continue to carry a premium thanks to lackluster production and less than ideal storage.

With production falling and storage near the five-year low, short-term gas deals are likely to carry a premium. Work with an objective expert like Ecom-Energy to get the most competitive prices available.