The henry hub spot saw modest weekly increases in the market, settling at $2.74 / MMBtu. The 12, 24, and 36-month forward contracts were flat, settling at $2.86; $2.82, and $2.81 / MMBtu respectively. As has been a normal patter, inflation does not appear to be baked into the forward price, and longer dated fixed price contracts appear to be offering good value to the customer. It is a great time to hedge out market volatility with a trusted ESCO provider. Allow them to do their job and manage price risk on a customer’s behalf.
New gas storage levels came out on April 12, 2018 for the week ending April 6, 2018. The overall storage level ended the week at 1,335 MMBtu, a cold weather driven decline in the system of 19 MMBtu. Natural gas storage levels are 21.9% below the 5-year average, and 35.2% below where they were 12 months ago. Keep in mind that this is storage in the system. As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers.
Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.