After the previous week which included a stable yet declining range of prices, natural gas continued to look bearish throughout the current week. Prices began the week around $3.83/MMBtu and slipped down to around the $3.78/MMBtu. Natural gas prices fell to a 12 week low. Experts believe the mix between strong storage injections and mild temperatures across the country have contributed to a decrease in prices. Storage began at 2252 bcf, but with this weeks injections the total in storage is 2347 bcf. Injections for this week totalled 95 bcf with the East region experiencing the highest percentage of this injection. Storage crept closer to the 5 year average this week, with only missing 58 bcf to match the average. With storage continuing to receive injections, natural gas could continue to see a steady decline in price.
Despite natural gases bearish outlook, crude oil is experiencing a bullish outlook this week. For the second week in a row, prices continued to climb in the crude oil market. Prices began the week around $94/barrel but steadily rose throughout the week to end up at $ 95.70/barrel. This roughly represents a $1.70 increase throughout the week. Along with seeing an increase in price, production for oil also is up. Despite all of these positive factors, the forcasted demand for oil continues to decline. This lethargic demand has been the main culprit for keeping oil below the $100/barrel benchmark. This quarter is so far off to a sluggish start, however according to an article from Yahoo, the IEA is expecting “Consumption to be somewhat higher towards the end of the year.” 1.1 million more barrels are expected to be consumed this year, compared to 2012 which could help return the market price for oil to above the $100 dollar mark.
Commercial Electricity Rates
ERCOT – Prices ranged between .028 and .05 on the Texas market today. Due to increased temperatures this summer, prices are expected to increase.
ISO – Rates were found between .032 and .052. With mild summer weather for the Northeast, prices appear to be stable.
MESO – Prices were found between .03 – .048, however these rates are expected to rise with a predicted increase in demand.
NYISO – Prices in the New York market ranged between a low of .035 and a high of .058.
PJM – Rates were relatively low for this time of year with the low end beginning at .034 and higher prices settling around .054
The weather predicted for this upcoming week will leave the South sweating, literally. The South is expected to experience warmer than usual temperatures ranging between an increase of 2 – 6 degrees. The West is expected to see some relief in that temperatures should decrease slightly anywhere from 2 – 4 degrees. The Midwest should remain relatively average until the end of next week. At that time temperatures should slightly rise above average. The Northeast is predicted to experience cooler temperatures than normal, thus weakening the demand for more NG in the area.