Temperatures have hit unprecedented and dangerous levels in China, North Africa, and the Middle East in recent months, and even from Texas to Florida, the heat index rose to 110 degrees in late June and early July.
Natural gas is a seasonal commodity that rallies when temperatures reach extremes and falls when heating or cooling requirements tail off. Therefore, the winter and summer tend to experience the most price variance.
Over the past years, natural gas has replaced coal in U.S. power generation, causing summer to become as volatile as winter in the natural gas arena. The recent temperature spike only increases the demand for cooling and the power generated by natural gas.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
