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Weekly Energy Market Update: February 8, 2016

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What are the current trends in regional natural gas and electricity prices? 

In the Weekly Energy Market Update for February 8, 2016, Tim Bigler — Direct Energy Business Energy Advisor — overviews regional natural gas and electricity prices, and offers some insights on low natural gas prices in the Dominion South Point region. 

Natural Gas Prices

Recent price data indicates that week-over-week natural gas prices for 2017 have not changed significantly, but are slightly down. Since the prices have not changed dramatically, the market may be taking a "wait and see" approach.

Electricity Prices

Since natural gas and electricity prices are highly correlated, we see the same price structure as natural gas. Prices have not moved significantly. 

Dominion Pipeline Price Impact 

Dominion South Point has the lowest natural gas prices for 2016, 2017, 2018, and 2019. The current price levels are well-below the break even cost for a majority of natural gas producers on this system. If production in the Marcellus and Utica regions decline, prices could increase. 

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: February 08, 2016