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Weekly Energy Market Update: January 4, 2016

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What is the long-term outlook for natural gas prices?

In the Weekly Energy Market Update for January 4, 2015, Tim Bigler — Direct Energy Business Energy Advisor — examines some recent changes in natural gas price trends. 

Structure of Natural Gas Prices

It's no secret that natural gas prices have dropped significantly in recent months, thanks to increased production, record inventories, and mild winter weather. However, the longer term price strips — 2017 through 2021 — look far less bearish than 2016. 


Because the market seems to be anticipating changes that could impact natural gas prices. Potential shifts in power generation, liquefied natural gas (LNG) exports, exports into Canada, or increased consumption in the industrial sector could all have a major impact on the price of natural gas. Regardless of the reason, there has been a clear change in market psychology that should be monitored going forward. 

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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: January 05, 2016