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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
With a severe heat dome threatening the eastern United States, the largest power grid has taken emergency measures to keep the lights on, highlighting the critical role of natural gas in peak demand. According to reports, the US Department of Energy issued two emergency orders to PJM Interconnection, serving 67 million people across 13 states, to dispatch additional generation units and use backup power to prevent rolling blackouts. This comes amid forecasts of triple-digit temperatures.
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Sign InNatural gas prices have responded, with front-month futures closing at $6.01 per MMBtu on June 29, according to market data, up from recent lows and reaching an intraday high of $6.33. The heatwave is expected to drive record power demand, increasing gas burn for electricity, while the emergency declaration underscores vulnerabilities in the grid's infrastructure.
Traders are monitoring weather forecasts for the duration of the heat dome, with resistance at $6.33 and support at $5.92 as key levels. The next catalyst is the weekly EIA storage report due Thursday, which could show a draw consistent with elevated cooling demand. Markets also await any additional announcements from the DOE regarding the emergency status.