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An unprecedented heat wave across the United States this summer has increased the demand for energy due to increased usage of air conditioning units.. The markets are expected to remain undersupplied until the end of next winter, as the March 22 gas premium over April futures were hovering near record $0.629 highs as of July 23.
Given the tight supply conditions and market levels, natural gas prices are likely to remain in contango in the near term. Thus, Wall Street analysts expect popular natural gas stocks EQT Corporation (NYSE:EQT) and Cabot Oil & Gas Corporation (COG) to rally more than 25% in the near term.
