July 2017 Energy Market Update
- Since February natural gas NYMEX has traded in a very tight range and is
- still slightly above $3.00.
- IMPORTANT TO OHIO NG CONSUMERS: Ohio well-head to burner-tip basis has risen $.55/mcf or more from a year ago as the supply surplus has disappeared.
- A cool June in Midwest and northeast along with a slight uptick in production has helped keep a lid on prices
A return of hot weather and related cooling demand, increasing LNG exports and well as growing exports to Mexico and lagging storage injections creates price risk for consumers in the coming weeks and months.
USA, USA, USA…The U.S. is now the largest natural gas producer, the largest exporter of propane and the largest exporter of refined petroleum in the world. The U.S. oil production is closely equal to that of Saudi Arabia and by 2020 the U.S. will likely be the largest LNG exporter in the world. The issue for customers is energy demand in the U.S. is equal to or greater than supply. Well-head to burner-tip basis in Ohio has increased significantly meaning that even if well-head prices are flat, burner-tip prices will be more. RD Energy is working to be proactive with customers at least a year in advance of contract end dates. However, customers need to be proactive too. Feel free to contact us so together we can talk strategy, create a plan and manage budget expectations. Together we need to look for electric and natural gas buying opportunities.