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How will delayed pipeline projects and a hot summer forecast affect prices?
In the latest Energy Market Update, Tim Bigler — Direct Energy Business Energy Advisor — overviews current NYMEX commodity prices and discusses a range of factors that could drive up oil and natural gas prices.
Watch the video below to learn more.
The spread between the 2017 and 2021 price strips has collapsed from about 70 cents to 25 cents. Waiting for further declines may not yield the same results as it has in the past.
The growth in natural gas production has largely been driven by pipeline expansion projects. Delayed or cancelled projects translates to less capacity which, in turn, could mean less production and higher prices.
The National Weather Service (NWS) is forecasting a hot summer across the United States. Warmer temperatures generally lead to an increase in electricity demand, which means more oil and natural gas could be used in power generation, resulting in higher 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: May 16, 2016