Arlington, Virginia – July 26, 2016 – EVA has released its monthly forecast of U.S. natural gas markets and prices. The market has responded to the declining production that had been noted in prior monthly updates with an increase in natural gas prices. However, there remains a storage overhang that will exert continued downward pressure on natural gas prices that will be necessary to enable the requisite amount of fuel switching in the electric power sector. Structural demand continues to increase as additional industrial facilities will add to demand more than the headwinds that are otherwise holding back U.S. industrial output. In the electric power sector structural changes are also occurring with the retirement of coal-fired units and the addition of gas-fired units which will both increase gas burn and reduce future price-driven fuel switching, as detailed in the report.
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