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Energy Market Update: August 22, 2016

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What is the projected outlook for natural gas inventories?

In the latest Energy Market Update, Tim Bigler — Direct Energy Business Energy Advisor — overviews 2018 regional natural gas and electricity prices as well as U.S. natural gas storage inventory levels. 

Watch the video below to learn more. 

2018 Regional Natural Gas Prices

There's a familiar picture for 2018 regional natural gas prices, which are highly reflective of pipeline capacity and wintertime constraints. Like 2017, three constrained regions — NE Algonquin, NY Iroquis Z2 and Transco Z6 NY — remain higher than the rest of the country. Prices at PA/OH Dominion South Point are well below average as there is a surplus of gas within the region. 

2018 Regional Electricity Prices 

Electricity prices for NYISO remain the highest in the country, but are below $40.00. Prices are lowest at ERCOT and the Northern Illinois Hub with a high penetration of renewables and easy access to natural gas. 

U.S. Natural Gas Storage Inventory Levels

There is a rapid decline in the year-over-year surplus of natural gas storage levels. However, the end of season storage levels will finish somewhere between 3,900 and 4,000 billion cubic feet (Bcf), just below the record set last year. 

For additional energy market news and information, please visit our Market Insights page and sign up for our Daily 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: August 22, 2016