Market Update
In the most previous market update, the price movements from January 27 to August 15 were highlighted. The trend that came about during this timeframe was sharply decreasing front year prices (31% decrease) and small but consistently increasing future year prices (3% increase in 2015, 4% increase in 2016, 8% increase in 2017, and 7% increase in 2018).
From August 15 to October 20, we’ve seen increasing prices across the board, including front year prices which have experienced an increase of roughly 5%. Pricing in both 2015 and 2016 have risen 3%. Pricing in 2017 has seen about a 1% bump while 2018 has remained relatively flat (0.1% increase). These increases have occurred over a period when natural gas prices have experienced a 5.5% fall. The takeaway from this is that the electric market wants to move upward in the immediate future, and essentially needs little excuse to do so.
Natural Gas NYMEX – Recent Trading:
How low will it go? That’s the serious question Chamber Energy Solutions has been asking as they watch market prices sink faster than the Titanic. Prices over the past month have dropped over $0.30 from October’s settlement of $3.98 and are now trading around $3.66. This, all in response to very little in natural gas heating demand despite moving closer to winter. As such, natural gas inventories continue their record setting builds. Short term and longer term weather maps are forecasting above average temperatures for much of the Country, which will do little to help boost prices in near term. However, analysts do expect prices to quickly increase at the first sign of a cold winter, so be prepared and let Chamber Energy Solutions manage your natural gas expenses.
Contact Your Anthony Wayne Regional Chamber Energy Consultant Today!
Emilie Snider, Energy Consultant
Email: esnider@palmerenergy.com
Office: 419-491-1017
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