RD Energy Newsletter: January 2017 for Hanover, Ohio

January 2017

Key Market Drivers

  1. When supply outpaces demand, prices fall
  2. When demand outpaces supply, prices rise
  3. When supply and demand are essentially equal prices are volatile
  4. Energy trading in December was very volatile.

 

Commentary 

All signs are pointing to a balanced natural gas supply and demand ratio in the U.S.  For the first time in at least a couple of year’s storage is now running at a deficit to the 5 year average.  When arctic blasts are forecasted prices quickly rise.  When warmer weather appears in the forecasts, prices sharply retreat.  Natural gas was trading in late November at $3.232/MMBTU, but quickly topped out at $3.759 by December 9th due to the arctic blast.  With warmer temperatures prices fell to $3.291 by December 20.  More January cold is forecasted so prices have once again rallied as of this writing to $3.93/MMBTU.

Those with 2017 natural gas renewals deciding when to buy is difficult.  Many are likely to wait until spring hoping that with the arrival of warmer temperatures prices will fall.  That plan may work great or it may put you between a rock and a hard place.  We know natural gas exports are growing.  We know natural gas use in electric generation is growing.  We know that right now there are question marks about if there is enough natural gas production to meet all the existing and new demand.  If we have a cold winter and the storage deficit grows throughout the winter, then by spring natural gas production has to be counted on to meet the added demand of putting an abnormally large amount of gas back in storage to make up the storage deficit by the time the next winter begins.

As we end 2016 and begin 2017 electric prices are very attractive long-term and natural gas prices are relatively attractive, but becoming volatile. When you consider that even with natural gas prices trading at $3.93/MMBTU prices were higher 10 out of the 12 months of 2014.  We at RD Energy try to set ourselves apart from our competitors and from telemarketers in two very important ways: we believe in helping build a strong energy buying strategy with our customers that will ultimately lower their energy spend, and secondly, we work hard to educate our customers through our newsletters, one-on-one discussions as well as seminars.  We truly believe that knowledge is power.  We want to say Thank You to our very loyal customer base for believing is us and working closely with us in 2016 and the many years prior.  Your confidence, cooperation and kind words inspires us to keep trying harder.

Read December 2016 Newsletter

 

RD Energy is Certified by the PUCO as a natural gas and power broker. We believe in creating a strategic energy purchasing strategy.  Timely buying, Demand Response and Peak Load Management are key tools available to buyers.  Given the opportunity RD Energy most often proves that more can be done to cut energy costs both for the short and long-term.  

RD Energy does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. RD Energy shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact

Posted in Business Energy Buyers, Commercial Energy, Energy Shopping, Natural Gas Prices, Ohio Energy Savings

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