- The natural gas NYMEX settlement for December closed at the highest price of 2016 at $3.232/MMBTU
- The natural gas market hit its lowest price in early March 2016 and rebounded strongly in July 2016.
- Natural gas gained $.47/MMBTU in the past two weeks
- 2017 electric prices are following natural gas prices up though to a much lesser extent
The last natural gas storage report published shows natural gas storage at a very high 4,045 bcf as of November 18. The country is well stocked entering winter. NOOA has forecasted that the average household will consume 8% more natural gas this winter. The largest usage increase for customers is expected to be in the Midwest and Northeast. December temperatures are expected to drop as we move through the first two weeks. Prices are trending up with the arrival of colder temperatures as expected. Natural gas prices has risen sharply the last two weeks. So has “basis” the cost component suppliers add to NYMEX to get the final burner-tip prices in the various sections of the country. Over the past two weeks there has been a “basis” price jump of $.20 – $.30/mcf behind Dominion East Ohio Gas and Columbia Gas of Ohio. Coupled with well head price increases along with “basis” increases we’re seeing price quotes rising $.50 – $.70/mcf over the past two weeks. Both of these price jumps signals concern about natural gas production levels keeping pace with upcoming demand. Since electric and natural gas prices run in close harmony you can expect short term electric price quotes to be higher as well. The good news in regards to electric wholesale pricing is that 2018 and 2019 prices are trading at a high discount to 2017 prices making 3 year fixed electric contract very attractive to consumers.
ALERT: There are some bad apples in the form of telemarketers. Be aware of telemarketers calling and in some way making themselves sound like AEP the utility telling your that your contract is up and you’d better act now. This is happening often to customers behind AEP so please keep in mind that AEP the utility will never call you about your supply contract. Also be aware of Premier Energy Strategies out of California calling and throwing out big numbers of savings. They are giving out false savings numbers to get your attention and then “shared savings” contracts. They are extremely aggressive once they get their hooks in.
- Small commercial and residential customers can shop for great electric prices at www.rd-energy.com
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Read November 2016 Newsletter
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