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Industry News (277)

THIS MORNING I BLOG IN FLIGHT ON MY WAY TO BIG MIKE’S 70TH SURPRISE BIRTHDAY PARTY. WHILE THIS IS NOT NEWS WORTHY, WHAT IS NEWS WORTHY IS I AM FLYING INTO A WINTER SNOWSTORM IN MID APRIL! CRAZY WEATHER LEADS TO MARKET VOLATILITY.

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.

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SPRING WEATHER SHOULD BRING SOME MUCH ANTICIPATED WEEKLY ADDITIONS TO THE NATURAL GAS STORAGE LEVELS. IT ALSO BROUGH UNANTICIPATED SNOW TO THE NORTHEAST!

The henry hub spot saw modest weekly declines in the market, settling at $2.70 / MMBtu.  The 12, 24, and 36-month forward contracts were also off, settling at $2.86; $2.82, and $2.80 / 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 5, 2018 for the week ending March 30, 2018. The overall storage level ended the week at 1,354 MMBtu, a cold weather driven decline in the system of 29 MMBtu.  Natural gas storage levels are 20.4% below the 5-year average, and 34.0% 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.

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THE RETAIL POWER AND GAS SUPPLY INDUSTRY CONTINUES TO TAKE MEDIA AND PUBLIC RELATIONS SHOTS BUT IT KEEPS ON PUNCHING. THERE ARE ESCO PROVIDERS OUT THERE THAT CONTINUE TO DO THE RIGHT THING AND MANAGE PRICE RISK FOR CUSTOMERS BY OFFERING FIXED PRICE

The henry hub spot reversed the trend by settling up 5.5% for the week, with term contracts following suit.  Prompt month changed to May 2018 and settled the short holiday week at $2.73 / MMBtu.  The 12, 24, and 36-month forward contracts settled at $2.88; $2.83, 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 March 29, 2018 for the week ending March 23, 2018. The overall storage level ended the week at 1,383 MMBtu, a cold weather driven decline in the system of 63 MMBtu.  Natural gas storage levels are 20.0% below the 5-year average, and 32.7% below where they were 12 months ago.  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.

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SPRING WEATHER HAS STARTED TO SETTLE IN ACROSS THE COUNTRY. WARMER TEMPERATURES TRANSLATES TO LESS DEMAND ON HEATING FUELS, AND NATURAL GAS STORAGE LEVELS WILL BEING TO RISE. THE SHOULDER SEASON IS TYPICAL OF MONTHLY STORAGE ADDITIONS.

The henry hub spot contract ended the week down slightly, with term contracts also trading slightly down to the prior week.  Prompt month settled at $2.59 / MMBtu.  The 12, 24, and 36-month forward contracts settled at $2.81; $2.78, and $2.77 / 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 March 22, 2018 for the week ending March 16, 2018. The overall storage level ended the week at 1,446 MMBtu, a cold weather driven decline in the system of 86 MMBtu.  Natural gas storage levels are 18.5% below the 5-year average, and 31.6% below where they were 12 months ago.  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.

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WINTER HEATING SEASON COMES TO AN END AS A FOURTH NOREASTERN STORM FORMS. STILL NOT A BELIEVER IN GLOBAL WARMING? EXPECT NATURAL GAS STORAGE LEVELS TO REBUILD IN THE SHOULDER SEASON.

The henry hub spot contract ended the week down slightly, with term contracts trading flat to the prior week.  Prompt month settled at $2.69 / MMBtu.  The 12, 24, and 36-month forward contracts settled at $2.88; $2.83, 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 March 15, 2018 for the week ending March 9, 2018. The overall storage level ended the week at 1,532 MMBtu, a cold weather driven significant decline in the system of 93 MMBtu.  Natural gas storage levels are 16.2% below the 5-year average, and 31.9% below where they were 12 months ago.  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. 

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A CHANGE IN DAYLIGHT SAVINGS TIME IS SOMETHING WE HAVE COME TO EXPECT THE SECOND WEEK OF MARCH. A THIRD NOREASTER STORM IN TWO WEEKS DEFIES ALL EXPECTATIONS. WEATHER EVENTS LEAD TO MARKET VOLATILITY. THE BEST HEDGE IS A FIXED PRICE CONTRACT.

The henry hub wholesale natural gas index has proven to be relatively unaffected by weather events.  The basis cost to get the gas delivered to your local market is where the volatility comes into play.  Downed power lines and market disruptions also contribute to wholesale and retail price volatility.  The henry hub spot contract ended the week relatively unchanged, settling at $2.73 / mmbtu.  The 12, 24, and 36-month forward contracts were also flat, settling at $2.90; $2.85, and $2.81 / mmbtu respectively.  As has been a normal patter, inflation does not appear to be baked into the 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 March 8, 2018 for the week ending March 2, 2018. The overall storage level ended the week at 1,625 MMBtu, a cold weather driven significant decline in the system of 57 MMBtu.  Natural gas storage levels are 15.6% below the 5-year average, and 29.5% below where they were 12 months ago.  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.  Keep a watch on the storage system draws, as we are approaching 20% deltas vs prior comparable periods.

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AS ALWAYS THERE IS A ONE WEEK DELAY IN THE REPORTING OF NATURAL GAS STORAGE NUMBERS, SO THE SECOND BOMB CYCLONE OF THE SEASON WILL NOT SEE THE IMPACTS UNTIL NEXT WEEK. NATURAL GAS FORWARD CONTRACTS WERE STILL AFFECTED.

Henry Hub natural gas price indexes continue to be low, but the basis differential to your local markets continues to be impacted by winter season cold temperatures.  The prompt month continues to show weakness, settling at $2.70 / MMBTu.  The 12, 24, and 36-month gas strips ended the week at $2.86, $2.82, and $2.80 respectively.  Again, these marks are for the henry hub index.

New gas storage levels came out on March 1, 2018 for the week ending February 23, 2018. The overall storage level ended the week at 1,682 MMBtu, a cold weather driven significant decline in the system of 78 MMBtu.  Natural gas storage levels are 18.1% below the 5-year average, and 28.8% below where they were 12 months ago.  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.  Keep a watch on the storage system draws, as we are approaching 20% deltas vs prior comparable periods.

Heating degree days are reverting back to in synch with comparable historical periods.  The cold snaps in January will no doubt lead to distress with ESCOs who were not effectively hedged, and the high-risk winter season is not over.

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NATURAL GAS FUNDAMENTALS CONTINUE TO SHOW DOWNSIDE PRICE PREASURES AT THE LIQUID HENRY HUB DELIVERY POINT. GAS STORAGE CONTINUES TO SHOW WEATHER DRIVEN DECLINES IN THE SYSTEM, WELL OFF THE 5 YEAR AVERAGE AND TRAILING 12 MONTH PERIOD.

What this all means for retail power and gas consumers is a great time to rate lock for term supply with an independent supply company that is well capitalized, and capable of managing risk on your behalf.  Henry Hub price indexes continue to be low, but the basis differential to your local markets continues to be impacted by winter season cold temperatures.  The prompt month continues to show weakness, settling at $2.63 / MMBTu.  The 12, 24, and 36-month gas strips ended the week at $2.80, $2.79, and $2.79 respectively.  Again, these marks are for the henry hub index.

New gas storage levels came out on February 22, 2018 for the week ending February 16, 2018. The overall storage level ended the week at 1,760 MMBtu, a cold weather driven significant decline in the system of 124 MMBtu.  Natural gas storage levels are 19.0% below the 5-year average, and 25.7% below where they were 12 months ago.  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.  Keep a watch on the storage system draws, as we are approaching 20% deltas vs prior comparable periods.

Heating degree days are reverting back to in synch with comparable historical periods.  The cold snaps in January will no doubt lead to distress with ESCOs who were not effectively hedged, and the high-risk winter season is not over.

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AFTER TRAVELING UP NORTH TO SEE A FANTASTIC LACROSSE GAME (BIG WIN FOR MY GREYHOUNDS!), I CAN TELL YOU THAT IT IS STILL COLD IN DEREGULATED MARKETS! THAT COLD WEATHER BRINGS UP HEATING DEGREE DAYS AND WHOLESALE PRICE VOLATILITY!

Henry Hub price indexes continue to be low, but the basis differential to your local markets continues to be impacted by winter season cold temperatures.  The prompt month falls back top trailing the future contracts, meaning that markets are back to their traditional shaping.  The 12, 24, and 36-month gas strips ended the week at $2.75, $2.76, and $2.76 respectively.  Again, these marks are for the henry hub index.  The environment continues to present retail power and gas customers with an attractive market to lock in term and hedge out your price risk for both electricity and natural gas.

New gas storage levels came out on February 15, 2018 for the week ending February 9, 2018. The overall storage level ended the week at 1,884 MMBtu, a cold weather driven significant decline in the system of 194 MMBtu.  Natural gas storage levels are 18.7% below the 5-year average, and 23.4% below where they were 12 months ago.  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.  Keep a watch on the storage system draws, as we are approaching 20% deltas vs prior comparable periods.

Heating degree days are reverting back to in synch with comparable historical periods.  The cold snaps in January will no doubt lead to distress with ESCOs who were not effectively hedged, and the high-risk winter season is not over.

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FOLLOWING THE BITTER COLD TEMPERATURES IN JANUARY, HEATING DEGREE DAYS ARE TRACKING THE HISTORICAL COMPARABLE WEEKLY AVERAGES. WINTER IS NOT OVER AND WEATHER DRIVEN PRICE VOLATILITY RISK REMAINS IN MOST DEREGULATED MARKETS.

The past week saw further declines in the prompt month natural gas contract (down 9.2%).  Remember, this is the Henry Hub Index. Local markets continue to see weather driven increased price spreads in the basis points.  The prompt month settled at $2.58 while the term contracts (12, 24, and 36-month futures) ended the week at $2.75; $2.76; and $2.77. The inexpensive wholesale markets should translate to weakness in the retail markets.  The cold winter season continues to expose customers on indexed power and gas plans to significant volatility price risk.  Not a fan of the perceived volatility in your respective plans?  Then you are the prime candidate for fixed price retail power and gas supply options.  There continues to be strong buying opportunities for those customers who choose to rate lock their power and gas supply for longer terms.

New gas storage levels came out on February 8, 2018 for the week ending February 2, 2018. The overall storage level ended the week at 2,078 MMBtu, a cold weather driven significant decline in the system of 119 MMBtu.  Natural gas storage levels are 19.5% below the 5-year average, and 15.9% below where they were 12 months ago. We may see storage in the system drop below 2,000 MMBtus in next week’s report.  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.  Keep a watch on the storage system draws, as we are approaching 20% deltas vs prior comparable periods.

Heating degree days continue to be higher than historical comparable periods, so there continues to be risk of high natural gas costs in your local market due to heating fuel demands.

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