The earthquake that rattled the East Coast and shut-down the North Anna nuclear power station caused gas futures to rise nearly 3 percent on Tuesday. Traders were concerned that wide-spread nuclear power plant shutdowns following the quake could lead to increased demand for natural gas to generate electricity.
However, natural gas futures settled back down 7.1 cents, or 1.8 percent, to $3.922 a million British thermal units on the New York Mercantile Exchange Wednesday after reports that the North Anna plant had restored offsite power and was no longer needing to rely on backup generators. With the area nuclear-power in a seemingly safe spot, the demand for natural gas-generated electricity subsided and futures eased.
According to the Dow Jones News Wires, natural gas futures have retreated from highs of nearly $5 per million British thermal units earlier in the summer, as the peak summer cooling season comes to a close. Signs of a weakening U.S. economy are also pressuring futures on concerns that industrial users could further cut electricity use.
More extreme weather in the form of Hurricane Irene will be expected to move up the East Coast and dodge the crucial Gulf of Mexico area – home to about 12 percent of natural gas output. In the absence of supply disruption, traders see few fundamental reasons to push gas prices higher.
In today’s market, prices are up one day and down the next. When it comes to buying electricity, timing is everything. At Live Energy, we keep our finger on the market’s pulse—locking in a low rate with the right electricity provider has never been easier. 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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