Direct Energy Business
Market Data For Your Home Contact Us

Weekly Energy Market Update: February 22, 2016

read | Share:

What is the price impact of increased natural gas demand from the U.S. power sector?

In the Weekly Energy Market Update for February 22, 2016, Tim Bigler — Direct Energy Business Energy Advisor — overviews current natural gas and electricity prices, and discusses how increased natural gas demand from the U.S. power sector is affecting prices.

Natural Gas and Electricity Prices

Recent price data indicates that week-over-week natural gas prices for 2017 have declined across regions. 

Electricity prices haven't declined as significantly as oil prices have begun to rebound. 

U.S. Power Sector Natural Gas Demand 

Natural gas production in the U.S. Northeast has hit a record high and the year-over-year natural gas storage surplus remains high. The combination of record production and a high surplus of natural gas in storage has contributed directly to low natural gas prices. 

However, U.S. power sector natural gas demand has increased, potentially keeping natural gas prices from going lower. 

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 22, 2016