Previously published in the Commodities Weekly

Powering up

    Natural gas prices were supported late last week by a record power burn (+40Bcf/d),lower-than-expected inventories, and a temperature forecast that was well aboveaverage heading into the weekend. In recent weeks, US natural gas balances havetightened due to the strong power burn and increased exports to Mexico. Inventoriescontinue to close in on five-year average levels, having gone from 50% above theseasonal five-year average in April-May to just +19% last week.