Gas must hold below 3 dollars to avert autumn storage glut: Barclays

摘要

Natural gas prices must hold below 3 dollars/MMBtu to create enough coal-to-gas switching to keep storage inventories from bumping up against capacity this fall, Barclays said in a report Monday. Gas' displacement of coal in the power-generation sector hit its peak during the third week of April at 9.45 Bcf/d when prices averaged below 2 dollars/MMBtu, but it pulled back to the lowest level of the year in July as prices rallied.