Atlas Eyesight


Warmer than average winter expected in the Northeast

by Atlas Research Team 

Credit: NOAA

According to the National Oceanic and Atmospheric Administration (NOAA) the northeast corridor is expected to have a wetter and warmer than normal winter. If this is true, it could mean buying conditions for our electric and gas customers will continue to be favorable.

Heating demand increases as temperatures drop during winter months which typically drives the market upwards. In other words, when homes and businesses start using their furnaces, natural gas demand increases. Historically this market upswing starts in October, however, this year natural gas stocks have continued to build into November.

The chart below shows New England having a fifty percent chance to have a warmer than normal winter. If the NOAA predictions are correct, heating demand could have minimal effect on our natural gas stocks and keep markets low.

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