Natural gas prices fell well below the expected price as it continues to fall on the market. Prices fell from the $3.40/MMBtu mark all the way down to $3.23/MMBtu. This marks the lowest point natural gas has reached in over 4 months. Cooler temperatures this summer could be attributed to this price decline, granted temperatures have risen recently. Prices are expected to continue to decline due to the bearish outlook natural gas has put out. Storage received an injection of 96 this past week. This amount was well above the expected output, but still far from equaling the storage totals from last year. Despite this, storage is 20 Bcf above the 5 year average. The East region once again received the highest amount of this injection.
After a week flirting with the $110/barrel plateau, oil took a sharp decline. Oil prices fell to around $102/barrel which would mark the lowest point oil has reached in over 2 weeks. Analyst believe with the large stockpiles increasing prices could drop below the $100 mark sometime in September.
Commercial Electricity Prices
ERCOT: Rates were seen between .061 – .077 cents.
PJM: Prices seen between .069 – .084 cents.
NY-ISO: Rates were found between .067 – .081 cents.
This upcoming week the South will be looking at temperatures increasing anywhere from 2 – 6 degrees above average. The East will be having cooler than expected temperatures, 0 -2 degrees cooler. The West and Midwest should experience a similar fate with temperature rising 2-4 degrees above average. Hurricane season thus far has not been as chaotic as once thought, helping gas prices fall well below the $3.50 trading mark.