This sustained heat is increasing baseload electricity demand, especially across ISO-heavy corridors such as PJM, MISO, and ERCOT. With little relief expected from cloud cover or frontal systems, CDD accumulation will remain elevated, reinforcing upward price pressure on Henry Hub futures.
Storm Activity Unlikely To Weaken Demand Profile
Localized thunderstorms are forecast across parts of the eastern U.S., but most are expected to be short-lived and isolated.
Afternoon storms may briefly suppress temperatures in specific areas, yet they are unlikely to materially reduce national CDD totals.
More importantly, there are no tropical systems or major production threats currently projected. As a result, the supply side remains stable and traders can stay focused on the demand narrative.
Storage Builds Lagging As Power Burn Rises
The EIA’s July 11 report showed a 53 Bcf injection, slightly below consensus. While total inventories remain above the five-year average, injections have trended lower in recent weeks as cooling demand pulls more gas into generation.
With dry gas production steady near 102 Bcf/d and LNG exports holding above 13 Bcf/d, the supply-demand balance is narrowing—supportive for prices if heat persists.