Key Market Drivers
September NG NYMEX futures closed at $2.853.
Just 3 months ago, June closed at $1.963.2017-2020 forward electric prices declined to a historical low in early August, but mid-month began to rise with expected strong electric demand extending into mid-September.
Energy buyers may want to consider purchases before winter forecasts gain clarity late October/November.
Early winter projections are for a normal to cold winter.EIA projects record NG inventories of 4,042 bcf by October 31.
We are now in the shoulders months of the year when the heat of the summer should be easing up and the cold of winter hasn’t yet begun. Many buyers throughout the country look to September and October as the time of the year when energy consumption is the lowest and in some years has been the best time of the year to buy new energy contracts. We have seen natural gas prices rise considerably from 3 months ago and electric prices rise the last couple of weeks off historical lows. It is always good to expect the unexpected. Will prices always fall in the shoulder months? No. They may temporarily fall a lot, they may dip slightly or they may do the unexpected and rise. Energy prices are not an exact science. It’s better to watch the market year-round and find opportunities when they occur rather than follow a preconceived time of year. We watch the market for our customers and inform our customers of buying opportunities regardless of the time of year.For those interested in more information, please follow us on our Facebook page to find a vast array of energy related articles covering a wide spectrum of topics.RD Energy is 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.
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