Electricity and natural gas pricing continues to be stable while crude oil has risen sharply, currently over $73 a barrel. Last week saw record high natural gas production which offset bullish weather (heat) across much of the US. In the past this heat wave would trigger sharp increases in natural gas futures and electricity pricing however, with robust production, increases have yet to materialize.
We need to be aware of growing gas-in-storage (for winter consumption) deficit when compared with five-year average levels. We’re on course to drop below the five-year minimum by August. This ongoing deficit could have an impact on pricing (higher) heading into winter. Time will tell, I’ll keep you informed.
Any of you who are not locked in for next few years should do so now. Current favorable rates will not be around forever.
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