Late July Energy Market Update Rebecca Zedeck July 26, 2017 Diversegy Blog, Market UpdateHere is late July’s energy market update: Reasons to Buy:Weather normalized demand continues to grow.Several new LNG facilities coming online in the next year.Market will turn bullish quickly depending on how hot it gets (cooling demand.)Reasons to Wait:Current forecasts for average summer temps may keep 5 year surplus intact heading into winter.Market fell overnight on expectations of lower cooling demand in the coming weeks.With natural gas production growth projected and significantly higher rig counts versus last year, the market could fall if incremental demand doesn’t keep up.186 gas rigs (-1 this week) vs. 88 gas rigs last year.Gas Market Highlights:Last week was the 15thstorage report and 15th injection of the 2017 Injection Season. Injection (28 BCF) was within analysts’ expectations (25-40). Storage is now 299 BCF below last year’s level and 141 BCF above the 5 year average.Year over year deficit has increased 3.5% since the previous week.Surplus over 5 year average has decreased 18.0% since the previous week.August 2017 NYMEX trading at 2.899 after opening at $2.914.Weather Highlights: Next 7 days:0.5-2 above normal for the Midwest, 0-3 below normal in the Northeast.Week following:0-3 below normal for most of the US.Note: Although natural gas does not necessarily indicate where electricity pricing is at, it is good as a general barometer for electricity markets as a whole. When gas gets expensive, so does electricity generated from natural gas.