A weakening relationship between nat gas and temps In the US, natural gas has struggled for nearly two years to cope with a storage surplus. Meanwhile, solar power generation has jumped to new highs. These are among the reasons that natural gas prices have languished despite growth in US electricity demand. And growth in solar capacity has weakened the formerly positive relationship between summer temps and gas prices. Francisco Blanch believes US power demand growth should continue into 2030, driven by data centers, electric vehicles, the transition to renewable energy, manufacturing and other areas. But while power demand growth should remain compelling, supply dynamics mean that the case for power and commodity price gains is less clear. Additionally, US election outcomes could impact much of the aforementioned. Meanwhile, Europe has seen power demand contract as industrial usage has declined while the Euro area also witnesses growth in solar and wind generation.  You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2024 Bank of America Corporation. All rights reserved.