Pure Fuel Information: Bearish Evaluation Dominates At this time, However Look ahead to Quick-Masking Pop…

Is the Climate Forecast Too Delicate to Help Costs?

Newest climate fashions level to widespread cooling throughout the northern half of the U.S. by early September.

NatGasWeather reported comfy highs within the 60s to 80s throughout the Midwest, Ohio Valley, and Northeast, decreasing air-con demand. Southern areas, together with a lot of Texas, are additionally seeing cooler-than-average readings.

Vaisala forecasts additional cooling between September four–eight, extending from North Carolina to Northern California. These developments proceed to undermine help for pure fuel costs sometimes buoyed by late-summer warmth.

Manufacturing at File Highs Pressures Costs Additional

Manufacturing stays a serious headwind. U.S. lower-48 dry fuel output hit 109.zero Bcf/day on Monday, up 6.three% year-over-year, based on BNEF. Lively fuel rigs held regular at 122 final week, slightly below the two-year excessive.

The EIA just lately revised its 2025 manufacturing forecast increased to 106.44 Bcf/day, whereas the 2026 outlook now stands at 106.09 Bcf/day. Present output is already close to document ranges, compounding the affect of weak weather-driven demand.

Do LNG and Electrical energy Demand Provide Any Aid?

LNG flows supplied a slight cushion, with internet exports rising 13.5% week-over-week to 15.7 Bcf/day. Home energy demand additionally confirmed power. The Edison Electrical Institute reported a 7.1% year-over-year rise in U.S. lower-48 electrical energy output for the week ended August 16. Nevertheless, these pockets of demand haven’t been sufficient to offset bearish sentiment tied to climate and provide.