The roller coaster ride continues for the natural gas market. After continuing to show signs of a bearish market last week, the rising temperatures finally caused the market to turn in the opposite direction. Prices began at $3.74/MMBtu on Friday, falling .07 cents from the previous day, then the bulls came running. The market rebounded over the weekend, and continued to trend upward. The market began to climb reaching a weekly high of 3.95/MMBtu on Wednesday. Current prices are listed at 3.90/MMBtu which is a .12 cent increase from the previous week. The current state of the gasoline looks promising, with high temperatures finally beginning to make the U.S. remember that it is summertime. This hotter weather will cause people to start cranking up their A/C soon, if not already. The storage report showed that we experienced injections of 91 Bcf. This was lower than the previous week by 4 Bcf. With more people using their A/C units, storage injections should continue to fall. We are slightly below the 5 year average by 559 Bcf but still within the 5 year historical range.
The previous week, crude oil climbed to to $95.70/barrel. At the beginning of the week prices looked bullish, rising to a weekly high of $98.60/barrel. However soon after this high point the market began to hover around the $96.00/barrel. A steady rise above this standard would almost constantly be followed by a decline. Crude oil is currently in a neutral state, however experts are becoming pessimistic. According to an article on Bloomberg, the crude oil stock piles have continued to grow, leaving more supply than demand. Along with that, “Added to that you have Mr. Bernanke’s stimulus withdrawal that may affect growth in the U.S., and these two factors are enough to pull down prices.” The combination of both the Fed’s policy and oil stockpiles growing leaves market analyst to believe the oil market will begin to look bearish.
Commercial Electricity Rates
ERCOT – Prices were found between .049 – .070
NYISO – Prices ranged between .050 – .080
MISO – Prices were found between .040 – .063
PJM – The Pennsylvania area showed prices ranging between .046 – .080
Commercial electricity prices continue to rise, with the grid beginning to be used to it’s maximum potential. Summertime is usually when peak pricing happens. With that being said, timing the market which constantly increases and drops, is harder to do without the proper tools. Here at Live Energy, we provide you the proper tools and assist you through the process of getting the most power for your dollars. For more information, visit our website and speak with one of our consultants to help your business.
The traditional Summer heat is finally starting to arrive. Get your A/C ready. Meteorologist are calling for some very warm temperatures in part of the country. The weekend is expected to bring the East an increase in temperature anywhere from 2 – 6 degrees warmer than normal. The Midwest is expected to see much of the same with temperatures heating up 2 – 4 degrees more than normal. The South is the only region to spared of above normal temperatures up until next week when they will increase anywhere from 2 – 6 degrees. The West is expected to experience a mix between warmer than average temperatures of 2 -4 degrees, followed by a decrease in temperatures anywhere from 2 – 6 degrees.
News in the Market
Would it not be wonderful if there was a crystal ball that allowed us to check what the market for natural gas, crude oil, or even gold. While there is not such thing in existence, (and if there is, someone let me know where I can pick one up), one man correctly picked the crashing gold market. His name is Michael Haigh, a New York businessman who created a formula compiled of 20+ variables to help predict the crash. He showed several investors through his homemade algorithm, in which he believed in a bearish gold market, people were misreading the signs presented in front of them. A couple months later, “The price is down 23 percent this year to $1,293.84, on track for its first annual loss since 2000.” Here at Live Energy, we have the next best thing to the mythical crystal ball. No, it is not a Michael Haigh clone, but the Live Energy portal. This portal will allow you to not only save money, but will also help limit cost even if the market goes up. How you ask? Just contact one of our energy experts and they will show you how you can save money and time on your next renewal.