Natural gas production continues at robust levels indicating 2019 supply will be sufficient throughout the year. High production likely will result in significant injections of gas into underground storage for use this winter, resulting in ample storage for 2019-2020 winter heating season. This is favorable for NYMEX futures pricing and is responsible for lower pricing […]
Energy deregulation
March 2019 Electricity and Natural Gas Update
March is here, winter’s about over meaning near term weather/temperature driven impacts on the market will be minimal. Now we look to basic fundamentals such as end of winter gas storage levels, gas production levels and liquefied natural gas (LNG) exports. Current gas storage is 9% below year-ago level and 21% below five-year average. Gas […]
February 2019 Electricity and Natural Gas Update
Click here for an initial showing of 2019 natural gas monthly futures numbers – February 12, 2019 settlement numbers. These numbers are baseline going forward in 2019. Due to lack of sustained cold and periodic warm ups in the Northeast, we have not experienced significant price spikes so far this winter, in fact futures have fallen […]
December 2018 Electricity and Natural Gas Update
Bottom line as we begin winter is this – gas in storage for winter heating needs is 20% below both last year and 5-year average levels for this week of the year. The market experienced a significant spike at the end of November due to below average temperatures, and forecasts for a colder than normal […]
Happy Thanksgiving and a Quick Energy Pricing Update
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.) […]
November 2018 Electricity and Natural Gas Update
Despite record natural gas production this summer, we began the official winter heating season (November 1st) with gas storage inventories at their lowest level in 15 years. Hot summer weather, liquefied natural gas demand, exports and increased industrial usage have resulted in lower-than-anticipated inventories. NYMEX futures pricing. While long term outlook for natural gas pricing […]
September 2018 Electricity and Natural Gas Update
You’ll note NYMEX futures pricing remains virtually unchanged over last nine months, no problem. With summer coming to an end and winter heating season not too far away, we need to look at level of gas in storage come November 1st which is “unofficial” start of the heating season. NYMEX futures pricing Current storage level […]
July 2018 Electricity and Natural Gas Update
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 […]
May 2018 Electricity and Natural Gas Update
Since last contacting all of you on March 30th there is virtually no change in natural gas futures pricing, in fact, no change in pricing since December 7, 2017. There is no change in our forward recommendation: lock in your electricity and natural gas rates through 2022. Excellent long term fixed rates are available, do […]
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 […]