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Weekly Energy Market Update: January 19, 2016

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How will U.S. liquefied natural gas (LNG) and crude oil exports impact prices at home? 

In the Weekly Energy Market Update for January 19, 2015, Tim Bigler — Direct Energy Business Energy Advisor — discusses 2017 natural gas prices, 2017 electricity prices, and the potential impact of LNG and crude oil exports. 

2017 Natural Gas Prices

The market appears to be segmented. Week over week prices have declined as the market believes that these regions — which are heavily reliant on both oil and LNG — will benefit from lower oil prices. 

2017 Electricity Prices

As we've discussed, natural gas and electricity prices are highly correlated in the U.S. Northeast. The New England and New York City market prices appear to be following natural gas prices lower. 

U.S. Natural Gas and Oil Exports 

It's a historic time for U.S. natural gas and oil exports. Recently, the 40-year ban on the export of U.S. crude oil was lifted by President Obama, leading to new exports of crude oil. The first liquefied natural gas (LNG) cargo will soon depart Cheniere Energy's Sabine Pass LNG terminal in Louisiana. Currently, these exports do not appear to have a significant impact on prices. 

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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 19, 2016