Storage inventories remain near the five year low. Strong international LNG demand and forecasts of above normal temperatures for the latter part of September are unlikely to provide much price relief.
Long-term deals are more cost effective than short-term ones. Risk can be mitigated with a diversified buying strategy. Many facilities are avoiding supplier premiums by relying on index-heavy strategies.
Bearish fundamentals have dominated winter thus far, dropping national prices to summer levels. Still, CA prices remain elevated, and changing weather patterns could provide support as heating begins to ramp up.