RD Energy Newsletter- July 2016 for Powell, Ohio

Welcome to the new RD Energy monthly newsletter.  The energy marketplace is ever changing so we want to help our customers stay informed on what is helping to shape and change the energy markets.  On occasion if something new happens we feel you should know sooner or in more detail, we will send out a “Special Edition” version of the newsletter.  Always feel free to contact us if you want more detail about a particular subject or if you want to discuss how the changes may affect pricing in the future.

 

201605

July 2016

Key Energy Market Drivers

  1. Natural gas NYMEX commodity prices increased from $1.963 in May to $2.917 in June or 48%
  2. Short term temperature outlook still leaning bullish with warmer than normal trends across U.S.
  3. Natural gas storage levels in U.S. in great shape, but weekly injections are lower than projections
  4. Drilling rig count has fallen from 1600 in 2014 to around 87 now.
  5. Natural gas surplus appears to be disappearing.
  6. Hot summer = high generation levels = high natural gas use
  7. Big question: Is there enough natural gas to meet consumer, storage, generation and LNG demand?

Commentary

Natural gas commodity prices increased 48% in 30 days and over 70% since late February.  The question hasn’t been answered yet whether there’s enough natural gas production to meet the high demand for natural gas in the production of electric generation in what so far has been a hot spring and summer as well as meet every day country-wide consumer demand, storage injection demand as well as LNG exports.  So far it appears that the answer is no.  Speculative traders who are short in the natural gas commodity market appear to be lowering their short positions that also helps to drive up prices.
The ideal time for buying natural gas and electric may have passed by at the end of February, but those with natural gas and electric supplier contracts expiring over the next 18 months should be exploring their price options for longer term buying opportunities. This past month was the second-hottest June on record nationally. If forecasts are correct and warmer than normal temperatures persist this summer, it is highly likely that natural gas and electric prices will rise further.
RD Energy is a Certified by the PUCO as a natural gas and power broker.  RD Energy’s president has over 35 years of total energy experience and over 25 years in the deregulated energy industry as well as having received the Certified Energy Procurement Professional certificate from the Association of Energy Engineers.  RD Energy believes in creating a strong and information based energy purchasing strategy.  Timely buying, Load Analysis, Demand Response and Peak Load Management are key tools available to buyers.  We often hear, “we have our energy purchases taken care of” from potential 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

rdenergypricechoice.com

SHOP, COMPARE, SELECT

Small commercial and residential
Electric and Natural Gas
Click here

Our Core Business

1RD Energy Deregulated Electric2RD Energy Cost Natural Gas Savings for Ohio3RD Energy Demand Response4RD Energy Government Aggregation

Contact Form

Fields marked with an * are required