January 16, 2024 [Reuters]- U.S. natural gas supplies have fallen by the most in over a year as extreme cold froze wells, while heating demand was on track to hit a record on Tuesday and lift both power and gas prices to multi-year highs.
Analysts boosted earlier forecasts for record gas demand on Tuesday but reduced their outlook for gas use on Monday, in part because many businesses and government offices will remain shut for the long U.S. Martin Luther King Jr. Day holiday weekend.
While it said the grid “avoided emergency operations due to the conservation efforts by Texas residents and businesses,” ERCOT expected electricity demand on Tuesday morning to top last summer’s all-time high and forecast tight power reserves.
U.S. GAS SUPPLY AND DEMAND
U.S. gas production was on track to drop by about 10.6 billion cubic feet per day (bcfd) over the past week to a preliminary 11-month low of 97.1 bcfd on Monday due primarily to freeze-offs, when low temperatures freeze wells and other equipment.
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