November’s cold weather triggered natural gas (futures) price spikes this month resulting in gains as much as 48% at its peak. Trading volume hit an all-time high of 1.2 million contracts on Wednesday, November 14th. All this action primarily due to short covering, lower than normal gas storage levels (-16.6% yr. ago, -18.6% 5-yr. avg.) […]
April 2018 Electricity and Natural Gas Update
Since last contacting all of you in February, my message remains the same: lock in your rates through at least 2021, preferably 2022. Excellent long term fixed rates are available and must be taken advantage of before they’re gone. And they will disappear. Often I have mentioned (warned) my concern for price spikes during winter […]
January 2018 Electricity and Natural Gas Update
Today is last business/trading day of 2017 and to summarize the year: no surprises, stable pricing. A significant factor has been lack of “real winter temperatures” in the Northeast along with robust gas production. As we end 2017 and begin 2018 we’re experiencing direct opposite, specifically, “real winter temperatures” not seen since Jan-Feb-March 2014. There […]
April 2017 Electricity and Natural Gas Update
Our main concern moving forward is simple: natural gas exports are rising while natural gas production, specifically from shale basins, is falling. Result is “uncertainty” over meeting obligations this winter which in turn causes volatility in natural gas markets. Near term futures pricing generally is impacted to a greater degree than outer months. This is […]
December 2016/January 2017 Electricity and Natural Gas Update
Winter is officially here and with that comes seasonal “rally” in futures pricing. Per attached you’ll note approximately 10% rise since mid-July, nothing significant. Most of this increase occurred on Wednesday when market spiked significantly due to prediction for season’s first “massive withdrawal” from storage on Thursday. I must note that between mid-July and now […]
December 2015 Electricity & Natural Gas Update
December’s warm weather combined with record amount of gas in storage has resulted in lower natural gas and electricity pricing. As stated previously, now is the time to lock in your rates if you’re not locked. Having price certainty going forward is prudent and a sound business decision. Please contact us anytime. Hard to believe […]
November 2015 Electricity & Natural Gas Update
The chart below is taken from U.S. Energy Information Administration, Nov. 25, 2015: Recall over the years how we would stress importance of reaching 3 trillion cubic feet of gas in storage by November 1st? Today we exceed 4 trillion cubic feet, the number is highlighted above. Plenty of gas. This number says it all […]
Happy 2015 and our Natural Gas/Electricity Update
Suddenly we realized we never wished all of you “Happy New Year.” We apologize, please accept at this time, all the best in 2015. Worldwide oil price drop applies to natural gas as well, biggest factors for gas being lack of sustained cold here in the Great Overtaxed Northeast along with continued robust production. There […]
Merry Christmas and our Natural Gas/Electricity Update
Attached gas futures pricing shows result of warm December weather — lower pricing. Warm weather combined with drop in worldwide oil prices has produced pricing far different from what we were experiencing last year at this time when we were in the grips of sustained cold. Will this continue? Winter has yet to show up […]
Happy Thanksgiving
Upstate Utilities wishes all of you a Happy Thanksgiving. We thank God for His goodness to us, He has blessed us in ways beyond what we deserve. Our prayer for this nation is that we return to following Him before it’s too late. Thanksgiving, or Thanksgiving Day, is a holiday celebrated in the United States […]