August 2017 Energy Market Update
- Just like the past few months, natural gas well head pricing has traded month over month in a very limited trading range.
2. Natural gas basis from the well head to the burner tip in Ohio has gone up dramatically from one year ago. $.60-$.80 depending on the load pattern.
3. Electric pricing forward curve for 2019, 2020 and 2021 is still very enticing.
4. First 2 weeks of August looks to be cooler and maybe much cooler in the Midwest and northeast. Will we see a strong natural gas price dip?
So far, the jet stream is somehow keeping the extreme summer heat out of the high energy consuming areas of the Midwest and Northeast. The first two weeks of August are forecasted to be cooler than normal for this same area of the country. Will prices tip strongly or will other fundamental factors show up once again to stop it? What could those fundamental factors be? The last week of of July reflected a very small natural gas storage injection. Some of the places in the country actually had a storage withdrawal. Feel free to call so we can discuss your current electric and natural gas price versus this and next year’s budget. Let’s plan ahead so we don’t just take what the market offers at one given point in time.