Key Market Drivers
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 weeks2017 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.
1. Small commercial and residential customers can shop for great electric prices at http://www.rd-energy.com
2. Like our Facebook page for interesting, current energy articles and up to date information!
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.