Energy Market Update
Natural Gas:
Despite a record stretch of frigid cold between the end of December & beginning of January, winter NYMEX pricing has remained at historically competitive levels aside from a brief run-up in the February NYMEX.
January 2018 final NYMEX settlement = $2.74/MMBtu
February 2018 final NYMEX settlement = $3.63/MMBtu
March 2018 final NYMEX settlement = $2.64/MMBtu
For the week ending January 5,
2018, a record 359 BCF (“billion cubic feet”) of natural gas was withdrawn from underground storage supplies, shattering the previous weekly withdrawal record of 288 BCF by a resounding 25%. Current storage levels show a 32% deficit vs. year-ago supplies along with a 16% shortage vs. five-year average supplies. NYMEX futures prices have remained under $3, however, as record production levels are anticipated to rapidly replenish supply levels as we enter in the natural gas injection season.
Electric:
Much to the delight of customers entering new agreements, the electric market has continued to present opportunities for competitive pricing and bottom line savings. While we saw an uptick in pricing during the frigid cold of winter, this has since settled back to a less volatile price trend with smaller swings in pricing over the past few weeks. We continue to remain in a backward-dated market with terms extending into 2021 and 2022 generally offering lower rates.
Regulatory directives remain a hot topic with state and federal agencies discussing items such as grid resiliency, infrastructure, security, and supporting baseload generation. As always, CES will monitor the proceedings and keep customers abreast of any regulatory changes that may affect your energy bills as a result of these ongoing discussions.
If you have not reviewed your electric purchasing strategy recently, now is the time to do so as we head into the warmer months.
Summer often presents volatility in the electric market so don’t wait until you crank the AC to be sure your business is prepared!
Please feel free to contact our Chamber Energy Solutions Energy Consultant, Trevor Kendrick, at (419) 491-1011 or
tkendrick@palmerenergy.com
to review.
