Natural gas near-term futures pricing is higher of late due to Hurricane Dorian and onset of official hurricane season, along with colder months just ahead.  This is normal commodity activity this time of year however, production and supply levels are strong and such factors normally restrain any substantive price increases.  Futures pricing is very attractive five years out.  

As we approach winter heating season, gas in storage throughout the country, by region and collectively, is above year-ago levels and slightly lower than the five-year average.  This is encouraging and indicates price stability moving forward.  However we’re dealing with a commodity and as such can be driven higher by a host of factors this time of year, primarily hurricane activity and forecasts for colder than normal winter — and of course “the unknown” and ever present worldwide political events. 

As I’ve mentioned for over 20 years, sustained cold here in the Northeast always results in higher prices and depleted inventory.  Should it occur again this winter same thing will happen – higher prices and higher futures pricing for many months and likely years out.  Lock in your electricity and natural gas rates while excellent long-term rates are available.

Please contact John with any concerns.