Natural gas prices broke out of their recent range this week, with the July contract testing $4.00 per MMBtu before easing on Friday. The rally has been driven by extreme heat forecasts for the East and Midwest, where next week could bring some of the hottest temperatures in a decade. Storage remains strong for now, with a 95-Bcf build last week, but injection rates are likely to fall as power generation ramps up and LNG exports return from maintenance. While solar is gaining share in the generation mix—though gas will still play a key role during peak demand. If this heat wave is the first of several, the summer outlook could tighten meaningfully.
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