WSI forecasts a colder than normal winter

WSI Corporation forecasts a colder than normal winter for much of the U.S. in its winter outlook released today. They are forecasting approximately 2.5% more gas weighted heating degree days than last year for the period of January through March.

"For February, WSI is forecasting colder-than-normal temperatures on a nationwide basis. Natural gas demand is likely to be very strong with high residential and commercial heating demand as well as increased demand from the power sector. Natural gas inventories are likely to see significant draws in February under this cold weather outlook." They say the "colder than normal temperatures will increase the bullish outlook for gas in February."

Reuters says according to WSI, "The current El Nino event and the cold north Pacific will contribute to the unusually cold weather, which will help boost gas and power demand in the large consuming regions, especially in February and March."