Cold Weather and Volatile Prices

We don’t need to tell you it is COLD OUTSIDE which is now impacting over 60% of the US and over 70% of the US population. In our weekly newsletter, ESI-Energy has forecasted this event to cause higher-than-normal natural gas inventory draws, increasing the chance of an inventory deficit that extends below a recent threshold with a strong correlation to higher prices. 

ESI is concerned about the development of higher natural gas prices, which only increases in risk through 2026-2027. Later this year, natural gas-fed power supply for AI data centers combined with increasing LNG exports will likely result in higher natural gas prices for a prolonged period.

The ESI-Energy newsletter is the most cost-effective source of information to understand energy markets with in-depth analysis that our clients count on from the ESI advisory services.  This weekly newsletter is delivered to our clients on Tuesdays covering crude oil, refined products, power, natural gas, LNG and NGLs. ESI-Energy’s analytics are the foundation of ESI’s monthly margin and price forecasts.

Contact us to inquire about our ESI Energy subscription so you can better understand the impact of this year’s near-record cold weather that could cause more volatile and higher natural gas (and ethane) prices for the next 2-3 years.