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Friday, 30 August 2013 14:09

GAS PRICES

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For week ending Aug 30th, gas markets are trending up for the third week in a row.  The 12, 24, and 36 month strips are now approaching the $4.00 mark, slightly above where they were at this time in 2012, and off the hi marks we saw at this time in 2011.  The spread between the 12, 24, and 36 month terms are relatively unchanged, so there does not appear to be an advantage for locking into long term fixed price products from a pure price perspective, although short terms locks of 6 months to one year will provide customers with a great deal of price certainty this coming winter season and into next summer for the 12 month product.  Variable price products may be lower, but will lack the protection of a fixed price product to protect against cold weather related effects on natural gas demand in the winter season.

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