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TFC Commodity Trading Forum

Re: weather March 26th-April 2nd/Shark/Lee

Take care in TX over the next few days...it looks ugly indeed. Lee, on the A/C thing, it seems very likely that this spring/summer will work our much warmer than average especially E of the divide. Nevertheless, the marginal demand for NG due to electricity has much less weight than the space heating demand. The only pressure on price will come from serious production cuts. Rig counts are going down alright but increased oil production, I believe, will offset declines from purely NG plays that are shut-in. So I don't yet see any pressure on NG and im betting $2 is pretty close now. CJ