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Energy Market Update: January 10, 2018

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As the frigid winter weather that swept through much of the United States and Canada moves out, what will be the long-term effects on electric and natural gas prices?

In this week's Energy Market Update, Tim Bigler — Direct Energy Business Energy Strategist — looks at the impact the deep freeze had on electricity and natural gas.

Watch the video below to learn more.

 

 

Impact of Cold Weather

Through December, gas prices were well below $10. However, record low temperatures in January led to prices in the triple digits across the eastern U.S.

Interestingly, impacts on NYMEX natural gas were minimal. NYMEX prices fell despite high gas and electric prices. However, natural gas futures show demand could outpace supply over the next few years and lead to price increases.

Regional Natural Gas and Electric Prices

Constrained regions, like NE Algonquin, NY Iroquis and Transco Z6 NY, and heavily gas-fired electric regions reacted to high natural gas prices in early Q1. In the western U.S., long-term factors are impacting the CAISO market. Recent high temperatures coupled with gas potentially leaving the area put a risk premium back into the market.

Stay tuned to the Direct Energy Business Blog for the latest energy market news and information.

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Posted: January 10, 2018

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