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We say all of this to help paint a more clear picture of the difficulty for businesses finding the right time to buy their electric and natural gas. When you have to run your own business you cannot be on top of all of these issues like an energy expert. This also helps to clarify why we often say that businesses who sign a new electric or natural gas supply contract right before their current supplier contract ends rarely achieves the lowest price possible. At RD Energy we strive to stay on top of all of these price altering factors the best we can so we can provide you both some basic Key Price Drivers each month in our RD energy Stay Current Newsletter and Podcast as well as help each business achieve more timely and opportune times for energy procurement. We’re not magicians or fortune tellers and may not always be perfect, but we believe our understanding of price trends and the energy data supporting these trends along with our unbiased competitive pricing process is second to none in support of our clients.
Key Drivers for Natural Gas and Electric Prices:
- The extremely cold January is over, but weather models forecast another less severe cold pattern beginning mid-February
- The natural gas surplus from the past two years versus the past 5 year average was wiped out completely by the very cold January
- LNG exports sits around 15 bcf/day and could soon go even higher as European natural gas prices hits the highest levels since October 2023 and European storage levels plunge
- It’s unknown what effect it will have on U.S. natural gas prices if Canadian natural gas imports gets hit with a 25% tariff February
- Will the new AI program from China named Deep Seek R1 truly be a game changer in regards to lower cost, lower power consumption and higher application efficiency in the AI competitive landscape or is Deep Seek being over hyped and profiting off stolen U.S. AI intelligence? Time will tell