After posting six-month lows in recent weeks, the September natural gas contract settled higher at $3.567/mmBtu. The September contract expired 3% higher than the August contract settlement, but was still 14% below this year’s peak settlement of $4.152/mmBtu. Above-normal temperatures across the Midwest helped to boost demand from the power sector for gas, lifting prices from the multi-month lows. The sharp change in temperatures this week in the Midwest and Northeast, however, should curb the need for residential and commercial customers to run air conditioners and reduce power demand. The winter strip and the CY2014 strip continue to average below $4/mmBtu.
