Natural gas futures moved higher in June and to date are moving bit lower in July. Current futures pricing mirrors year ago pricing.

Current level of gas in storage is 3.14 trillion cubic feet (tcf) which is easily higher than last year at this time (2.64 tcf). Recall how hitting 3 tcf by November 1st (start of winter) was key. What is happening however is slower gas production and lower weekly storage injections which is reducing the year-on-year surplus. This is being fueled by limited additional storage capacity (some say we’ll utilize 100% of storage capacity), lower prices and overall desire to “slow things down.” Tighter supply means higher prices.

Moving forward we have summer heat and hurricane season to deal with (hurricane activity virtually nonexistent over recent years) which drives both electricity and natural gas pricing higher. Another “no hurricane season” this year will keep prices in check, and when coupled with more than ample gas supply in storage come November 1st, we’re in good shape.

An active hurricane season changes everything.

Bottom Line: We’ve had a good run on (lower) pricing but it will not last forever. Never does. Lock in your electricity and gas supply rates now. Please contact us to lock in.

NYMEX Henry Hub Natural Gas Wellhead Monthly Settlement Pricing.