Energy Buying Strategies in a Volatile Market

read | Share:

Per the Weekly Energy Market Update, I have provided some energy buying strategies in the current volatile market.

Late October is the time for last-minute shopping for energy buyers. Winter is around the corner and the new year is not too distant. Whether customers are looking to hedge the winter or lock in prices for 2014, it is time to get moving if these purchases have not been made already. Fortunately, wholesale gas and power prices are low, providing one more opportunity to lock in prices before entering the volatile winter months.

Market Update

There has been fall volatility, but with little net change, as shown in the data below. Prompt month NYMEX natural gas futures bounced between $3.50 and $3.80 during most of September and into early October. After a very mild start to October, forecasts for a cold snap pushed energy prices higher and set 4-month highs. The rally was surprisingly strong, and near-term prices posted their highest levels since spring (on October 14, prompt settled at $3.82 and 12-month strip at $4.02). Thereafter, prices retreated just a week before the beginning of “gas winter”, which is generally defined as November through March.

Set your ZIP code and utility

Enter a valid ZIP code
Unfortunately, we don't currently service this area. Please try another ZIP code.

Loading please wait...

Don't see your utility?

We currently only provide service to the listed utilities. For question, please contact 1-888-925-9115.

Loading...

34.236.190.216