Gas Market Is on ‘Knife’s Edge’ Despite U.S. Warmth, BNEF Says

Summery weather into October is easing a U.S. natural gas supply squeeze, but the market remains vulnerable to hair-trigger volatility heading into the winter, according to BloombergNEF.

Heating demand this month is expected to be the lowest in about two decades, allowing producers to add more than three times as much gas to underground storage as they did last October, BNEF said Tuesday in a report. As a result, stockpiles could approach normal levels before the winter, even after concerns about tight supply propelled prices to a seven-year high earlier this month.