Today’s blog from RBN Energy discussed the outlook for natural gas at the end of this winter. (See post here.) A lot of the issues in today’s RBN blog are related to the natural gas discussion I had in my last SeekingAlpha article. (See November 2018 Utility Review) The RBN article helps show that there is a good chance we could end the winter at lower storage levels than last year. If that happens we should expect gas prices to go up even more from the highs of the last month.
Besides keeping track of the weather, one other thing to keep an eye on is how prices move at the beginning of January. Last year during the bomb cyclone there were record levels of natural gas use. So unless we’ve had some big usage this winter, the year-over-year numbers will start looking much better at that time. This could lead to the market being more comfortable with the gas storage position and weaken prices a bit.