Menu
Items filtered by date: November 2018

The natural gas (Henry Hub) forward contracts all saw modest gains for the week.  The prompt month contract settled at $4.31 / mmbtu.  The 12, 24, and 36-month contracts settled at $3.27; $2.97; and $2.85 / mmbtu respectively.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The curve continues to display a well-established contango shape, indicating buying opportunities for those customers electing to lock in rates for longer terms (both power and gas).  As seen in the YTD Henry Hub Gas price chart, spreads are getting wider between the prompt month and term contracts.  Taking fixed price term contracts for both power and gas is becoming even more attractive for both commercial and residential customers.

New gas storage levels came out on November 21, 2018 for the week ending November 16, 2018. The overall storage level ended the week with a cold weather driven triple digit decline at 3,113 / mmbtu, a net weekly decline in the system of 134 BCF.  Natural gas storage levels are 18.6% below the 5-year average, and 16.6% 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.

Attractive opportunities are in the market for customers to hedge.

Published in Industry News

The prompt month contract was up over 20.0% for the week settling at $4.27 / mmbtu.  Expect similar weather driven weekly increases in the prompt month for the near future as demand spikes for heating fuels such as natural gas.  Customers on variable rate power and gas plans will feel that pain on their upcoming bills.  The 12, 24, and 36-month contracts were also up at more moderate weekly increases, settling at $3.19 (up 7.4% for the week); $2.93 (up 3.2% for the week); and $2.83 / mmbtu (up 2.0% for the week) respectively.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The curve continues to display a well-established contango shape, indicating buying opportunities for those customers electing to lock in rates for longer terms (both power and gas).  As seen in the YTD Henry Hub Gas price chart, spreads are getting wider between the prompt month and term contracts.  Taking fixed price term contracts for both power and gas is becoming even more attractive for both commercial and residential customers.

New gas storage levels came out on November 15, 2018 for the week ending November 9, 2018. The overall storage level ended the week breaking the 3,247 / mmbtu, a net weekly increase in the system of 39 BCF.  Natural gas storage levels are 15.6% below the 5-year average, and 14.0% 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.

Attractive opportunities are in the market for customers to hedge out the upcoming winter volatility season with fixed price contracts.  Heating Degree Days (65 degrees minus the average local temperature for the week) are a terrific indicator of the impact seasonal weather has on gas and power price volatility.  A quick look at the LTM natural gas price chats should highlight the risk that customers on variable rate plans expose themselves to.  Power prices in NYISO Zone J spiked to in excess of $200 / mwh during certain time intervals this week.  While forecasters are anticipating a mild winter season, the (heating degree day) bar charts show that winter 2018 has so far seen colder temperatures, and increased demand for heating fuels such as natural gas.

Published in Industry News

The prompt month contract shot up 7.3% for the week settling at $3.54 / mmbtu.  Expect similar weather driven weekly increases in the prompt month for the near future.  The 12, 24, and 36-month contracts were also up at more moderate weekly increases, settling at $2.98; $2.84; and $2.78 / mmbtu respectively.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The curve continues to display a well-established contango shape, indicating buying opportunities for those customers electing to lock in rates for longer terms (both power and gas).  As seen in the YTD Henry Hub Gas price chart, spreads are getting wider between the prompt month and term contracts.  Taking fixed price term contracts for both power and gas is becoming even more attractive for both commercial and residential customers.

New gas storage levels came out on November 8, 2018 for the week ending November 2, 2018. The overall storage level ended the week breaking the 3,208 / mmbtu, a net weekly increase in the system of 65 BCF.  Natural gas storage levels are 16.2% below the 5-year average, and 15.3% 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.

Attractive opportunities are in the market for customers to hedge out the upcoming winter volatility season with fixed price contracts.  Heating Degree Days (65 degrees minus the average local temperature for the week) are a terrific indicator of the impact seasonal weather has on gas and power price volatility.  While forecasters are anticipating a mild winter season, the (heating degree day) bar charts show that winter 2018 has so far seen colder temperatures, and increased demand for heating fuels such as natural gas.

Published in Industry News

This week saw the prompt month natural gas contract shift to Dec 2018.  The prompt month contract saw an increase, while term contracts were off.  Prompt month was up 3.1% settling at $3.28 / mmbtu.  The 12, 24, and 36-month contracts were all off, settling at $2.86; $2.77; and $2.72 / mmbtu respectively.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The curve continues to display a well-established contango shape, indicating buying opportunities for those customers electing to lock in rates for longer terms (both power and gas).  As seen in the YTD Henry Hub Gas price chart, spreads are getting wider between the prompt month and term contracts.  Taking fixed price term contracts for both power and gas is becoming even more attractive for both commercial and residential customers.

New gas storage levels came out on November 1, 2018 for the week ending October 26, 2018. The overall storage level ended the week breaking the 3,143 / mmbtu, a net weekly increase in the system of 48 BCF.  Natural gas storage levels are 16.9% below the 5-year average, and 16.5% 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.

Attractive opportunities are in the market for customers to hedge out the upcoming winter volatility season with fixed price contracts.  Heating Degree Days (65 degrees minus the average local temperature for the week) are a terrific indicator of the impact seasonal weather has on gas and power price volatility.  While forecasters are anticipating a mild winter season, the (heating degree day) bar charts show that winter 2018 has so far seen colder temperatures, and increased demand for heating fuels such as natural gas.

Published in Industry News

Login or Sign In