Natural Gas Storage Report for Week Ending October 14, 2011

Natural Gas Storage Report for Week Ending October 14, 2011

According to the U.S. government’s weekly report, natural gas inventories rose 103 billion cubic feet last week, short of the 110-bcf injection forecasted by analysts. Although supplies were shy of the projected figures, the build is still large by historical standards, and overall inventories of 3.624 trillion cubic feet are closing in on last year’s all-time high of 3.840 trillion cubic feet.

So far, this shoulder season of fall has seen a series of very large builds driven by mild weather and high production. Last year, which also saw historically strong builds during the first two weeks of October, witnessed 183 Bcf of net injections. The 5-year average build for the first two weeks of the month is just 130 Bcf. This year, roughly 215 Bcf has been added to storage, a 41 percent increase over the average. Three of the last four weeks have seen triple digit builds.

That large supply and mild temperatures have reduced the demand for natural gas which means prices fall. Futures have been stuck below $4/MMBtu since Sept. 15 and are likely to remain there until temperatures move significantly lower.

Electricity pricing isn’t immune to the shoulder period, either. Texans are finally enjoying cooler weather and have gleefully shut off their air conditioners after a near record-breaking heat wave. Subsequently, lesser demand for electricity has resulted in falling electricity prices as well.

Before the heating season approaches and prices go back up, now would be an ideal time to shop around for a lower electricity rate for your business. The intense summer heat across Texas strained the grid and many electricity providers as well. As a result, some providers have passed their increased operating costs onto their customers. With electricity rates at historical lows, you shouldn’t needlessly paying more for electricity when lower rates are always available.

With the help of a certified energy advisor from Live Energy, shopping for lower business electricity rates has never been easier. We’ll provide a detailed comparison of current electricity offers and a whole lot more. For more information on how we can help you find the right electricity plan for your business, contact us at (877) 810-7770 today.


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