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Weekly Energy Market Update: November 30, 2015

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Last week, we explained how natural gas basis is the difference between various price points across the United States and the Henry Hub. 

This week, in the Weekly Energy Market Update for November 30, 2015, Tim Bigler — Direct Energy Business Energy Advisor — highlights interesting price trends at some of the other price points, including Algonquin Citygate and Dominion South Point. 

Watch the video below to hear what he had to share. 

Natural Gas Basis

As we discussed last week, natural gas basis is simply the price differential between various price points in the United States and the Henry Hub. This week, we examined two of those other price points: Algonquin Citygate (which covers New England) and Dominion South Point (which includes portions of Pennsylvania, Ohio, Maryland, West Virginia, and Virginia). 

Algonquin Fixed Price

Examining recent New England price information for April-October 2016, it appears that every time the fixed price trades near the $2.50 mark, the price seems to rebound. This implies that $2.50 might be fixed price support for the April-October 2016 time period. 

Dominion Fixed Price

Similar to New England prices, whenever the Dominion South Point fixed price for 2016 trades near the $1.50 mark, prices seem to rebound. 

Conclusion

Why do these prices trends matter? Because they may help indicate strategic buy points for your business in those markets. 

Direct Energy Business is always here to help identify the most strategic procurement approach for your business with our Virtual Product Advisor. For additional energy market news and information, please visit our Market Insights page and sign up for our Weekly Market Updates.

Tim Bigler, Senior Market Strategist at Direct Energy Business, is a 30+ year veteran of the U.S. natural gas, electric, and oil market.

Posted: November 29, 2015

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