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This past week, natural gas had been starting to trend upward, and in several cases increased on average of about .05 cents per day. However this trend didn’t last very long with prices rising too but not going above $4.20/MMBtu for the week. The low price for the previous week was $4.06/MMBtu, which occurred on Friday, May 17th during a down day at the market. Prices for NG for the week ended up trading at around $4.18/MMbtu, staying much closer to the high for the week. Storage has once again experienced an injection, with an increase from 1964 Bcf to 2053 Bcf. Despite this 4.5% increase or 89 Bcf injection, storage is still well below the 2733 Bcf we had the previous year. The East experienced the largest increase, seeing storage rise from 811 to 857 in the area. Even with this injection, storage was below it’s 5 year average by 84 Bcf. However, storage is still within it’s minimum and maximum for the 5 year period.

Crude Oil

After experiencing random and inconsistent price drops last week in the price of crude oil, prices seemed to become more stable. Last week the price per barrel ranged around $96. This week prices seemed to have taken a less dramatic drop, but still fell to around $93 dollars a barrel. After showing some potential of rebounding, prices this week ranged from a high of $96.71/barrel to the weekly low of $92.45. According to an article in The St. Louis Post, dipping oil prices could be credited to a stronger U.S. dollar, which has picked up due to the economy picking back up.

Commercial Electricity Rates by Market (May 23)

ERCOT: Rates in the state of Texas were shown to be between .025 – .044 cents. The previous prices for the ERCOT ranged between .03 -.045 cents. This decrease can be attributed to a decrease in the NG market. The ERCOT continued to show the widest range of prices. 

NYISO: Rates in the New York market were between .029 – .047.

MISO: Rates for the Mid-West have ranged from .024 – .026

PJM: The greater Pennsylvania area showed prices ranging between .040 – .052

Weather Outlook

Weather for the upcoming week appears to have added heats waves throughout a majority of the continental U.S.. The Southern part of the country will be experiencing anywhere from a 2 to 6 degree increase. The Midwest could experience the most diverse change of temperatures, ranging from 2 – 4 degrees cooler, and than experiencing a drastic swing with temperatures increasing from 4 – 8 degrees later in the week. The Northeast should remain relatively stable, with an average increase of 2 degrees. The West coast will remain relatively cool, with temperatures expected to be cooler throughout the week. If these temperature increases stay consistent, it would continue to help the bullish looking market as prices could begin to climb before the start of June.

News In the Market

 With the recent natural disasters affecting the Oklahoma area, many people, myself included, we’re curious how gas prices would be affected considering how many refinery plants there are in the greater OKC area. As reported on Bloomberg, “[tornado] may not have affected refinery operations in the area.” Although Oklahoma is more well-known for being home to stockpiles of crude oil, it also houses several large NG refineries.  Had several of the refineries been damaged due to the EF-5 tornado, the amount of available NG could have been greatly affected, potentially driving the price of the June’s NG future price upward. After further investigation  it appears that the refineries were out of harms way and have continued refining it’s share of NG.

Traditionally, besides Memorial Day Weekend being a time relaxation, family travels and outdoor activities, this is also the time of year that signals increasing cost in NG and electricity across the nation. This time of year normally begins the hot, humid summer everyone loathes. However last year we had a rare reprieve in cost of electricity. Rates around this time last year were much cheaper by comparison to this year at the same time. Although prices have steadily continued to climb, the market is still very unpredictable. If this year has been any indication thus far, expect electricity rates to climb.

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Prices failed to follow through on Thursday’s sharp 7.2 percent rise, as updated temperature outlooks show below normal temperatures limited to a slim area of the nation’s southern border and Gulf Coast into the second half of the month. Most of the country will see normal to above-normal temperatures, a persistent scenario that has slashed demand and allowed gas storage levels to balloon.

Most gains made Thursday were lost today—natural-gas futures for March delivery down 7.4 cents, at $2.479 per million British thermal units, after a low of $2,457/mmBtu.

Data released Thursday by the Energy Information Administration showed the level of natural gas in storage fell by a slightly greater-than-expected level of 132 billion cubic feet last week, amid a brief cold snap. But the surplus of gas in storage expanded to 25 percent above both a year ago and the five-year average for this time of year. In the prior week, the surplus was 21 percent above historical levels.

In fact during a recent address, Obama touted that the United States has “a supply of natural gas that can last America nearly 100 years.” The current administration has also referred to the U.S. as “the Saudi Arabia of natural gas,” and has pledged to get more U.S. vehicles running on natural gas and to have natural gas refueling stations built along select highway corridors. “

Although we have a supply glut currently, the difficulty and uncertainty in predicting natural gas resources was underscored last month when the Energy Information Administration released a report containing sharply lower estimates.

The agency estimated that there are 482 trillion cubic feet of shale gas in the United States, down from the 2011 estimate of 827 trillion cubic feet—a drop of more than 40 percent. The report also said the Marcellus region, a rock formation under parts of New York, Ohio, Pennsylvania and West Virginia, contained 141 trillion cubic feet of gas. That represents a 66 percent drop from the 410 trillion cubic feet estimate offered in the agency’s last report.

The Energy Information Administration said the sharp downward revisions to its estimates were informed by more data.

Under the agency’s new estimates, the Marcellus shale, which was previously thought to hold enough gas to meet the entire nation’s demand for 17 years at current consumption rates, contains instead a six-year supply. The report comes just five months after the United States Geological Survey released its own estimate of 84 trillion cubic feet for the Marcellus shale.

The relationship between natural gas prices and electricity rates are often intertwined. Now is a great time to lock-in to a low electricity rate for your business. Don’t have the time to look around? No problem. By partnering with an electricity broker company like Live Energy, we make it easy to find the best rate and plan for your business. To ask questions and know your options, give one of our certified energy advisors a call today at 877-810-7700.

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The settlement was the lowest since Nov. 18, when front-month futures sank to a one-year low of $3.316/MMBtu.

Thursday’s increase was attributed to the EIA’s report showing a larger-than-expected draw in natural gas inventories. Traders initially took the Department of Energy report as a sign of improving demand for gas-fired heating. The EIA reported that 20 BCF of gas was withdrawn from storage last week, compared to the market expectation of a 12 BCF withdrawal. Total storage now stands at 3.831 TCF, 8.7 percent above the 5-year average.

Natural gas futures typically rise into the winter months as gas-fired heating demand surges with colder weather. But high production across the U.S. combined with above-average temperatures pushed supplies to record levels. The situation has kept a lid on futures prices, which have traded near 10-year lows for this time of year.

Prices are expected to begin moving higher as winter weather sets in, but few expect a surge into next year.

In other energy news…This morning, ERCOT trades for this weekend’s and Monday’s peak hours went through in the upper $20’s while off peak trades went through in the mid $20’s. Peak load for this weekend is expected to be about 37,000 MW, and Monday is expected to be about 39,000 MW. For the next couple of weeks, high temperatures throughout most of ERCOT are forecast to be mainly in the 40’s and 50’s while occasionally reaching into the 60’s. Forward heat rates were fairly flat today.

If you haven’t had a chance to shop around for the lowest business electricity rate, what are you waiting for? Now is a great time to look into your options before the heating season ramps up and the demand for gas-fired heating causes prices to rise. With the help of a certified energy advisor from Live Energy, you can manage the risks and reap the rewards of buying business electricity in a deregulated market.  We’ll provide a detailed comparison of current electricity offers, and a whole lot more. For more information, call us today at 877-810-7700.

Commodity Prices ($)

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Natural gas for January delivery ended the day down 12.3 cents, or 3.4 percent, at $3.461 a million British thermal units on the New York Mercantile Exchange. The January contract fell as low as $3.444 during the session, but settled even with its previous low.

Futures last week actually jumped to their highest levels since early November after a surprise decline in U.S. gas stockpiles. The U.S. Energy Information Administration said inventories fell to 3,851 Bcf as of Friday, November 25, according to the EIA’s weekly report. This represents an implied net withdrawal of 1 Bcf, the first withdrawal of the 2011-2012 winter heating season. The withdrawal was considerably smaller than both the 5-year average withdrawal of 29 Bcf and last year’s 21 Bcf draw. Stocks are now 261 Bcf and 41 Bcf above the 5-year average and last year, respectively.

The regional breakdown shows that the East Region was actually the only region with a net withdrawal during the week. This net withdrawal occurred despite relatively warm weather in the East Region during the week. The West and Producing Regions built by 2 Bcf and 14 Bcf, mostly offsetting the draw in the East Region. All three regions remain well above average levels, but the Producing Region stands out at 159 Bcf (14 percent) above average.

Forecasts may vary, but your business’ electricity rate doesn’t have to. 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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The EIA reported that 19 BCF of gas was injected into storage last week, less than the market expectation of 27 BCF but more than normal for this time of year. Total storage now stands at an all-time record high level of 3.850 TCF, 6.2% above the 5-year average and 0.4% above last year for the same week.

Although natural-gas prices typically rebound heading into the winter months as residents of colder U.S. states draw on fuel stockpiles to heat their homes and businesses, most regions have enjoyed a warmer fall. As a result, the continually growing inventories have outpaced demand from natural gas-fired heating.

Mild weather forecasts continue to beat down the heating demand expectations for the next couple of weeks. Much of the country is experiencing temperatures from near average to 15 degrees above average. High temperatures throughout most of ERCOT are forecast to be well above normal for Saturday through Tuesday before cooling off into the 60’s and 70’s for the rest of the month.

In other energy news…ERCOT trades for today’s peak hours went through in the upper $20’s and off peak trades went through in the low $20’s. Forward heat rates were weak again today as summer 2012 was down about 50 ticks and summer 2013 was down about 40 ticks.

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.

Commodity Prices ($)

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As a result, natural gas futures fell again Thursday 2.6 cents, or 0.7%, to $3.626 a million British thermal units on the New York Mercantile Exchange. Prices had already hit a record low the day before for the front-month December contract.

Gas futures are suffering from a supply glut, down 30% in the last three months with high production levels and mild winter weather suppressing demand. Natural gas is a key component of power generation, and demand rises and falls as people heat or cool their homes.

If you haven’t had a chance to shop around for the lowest business electricity rate, what are you waiting for? Winter is just around the corner, so now is a great time to look into your options before the heating season ramps up and the demand for gas-fired heating causes prices to rise. With the help of a certified energy advisor from Live Energy, you can manage the risks and reap the rewards of buying business electricity in a deregulated market.  We’ll provide a detailed comparison of current electricity offers, and a whole lot more. For more information, call us today at 877-810-7700.

The post Natural Gas Futures Slip on Oversupply appeared first on Energy Broker | Business Electricity Rates | Commercial Electric Rates | Live Energy Inc.

Natural gas for December delivery settled up 0.5 cent, or 0.1%, to $3.783 a million British thermal units on the New York Mercantile Exchange.

Industry weather group MDA Federal said Friday that it expected mostly milder-than-normal temperatures across the U.S. Northeast states over the next six-to-ten days.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late October and early November on heating demand.

A large supply in inventories has kept prices in check as well. On Thursday, the EIA released that working natural gas in storage rose to 3,794 as of Friday, October 28. This represents a 78 Bcf implied net injection. Inventories are now 17 Bcf below their year-ago levels and 201 Bcf above the 5-year (2006-2010) average. This week’s injection is more than twice as large as the five-year average injection of 35 Bcf.

The end of October marks the traditional end of the injection season and the beginning of the winter heating season, though often, relatively small injections continue into November. In fact, for the next two upcoming storage injection report weeks, the 5-year average is a positive number, representing a net injection.

Forecasts may vary, but your business’ electricity rate doesn’t have to. 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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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.

The post Natural Gas Storage Report for Week Ending October 14, 2011 appeared first on Energy Broker | Business Electricity Rates | Commercial Electric Rates | Live Energy Inc.

• Stocks were 56 Bcf less than last year at this time and 68 Bcf above the 5-year average of 3,453 Bcf.

• In the East Region, stocks were 19 Bcf below the 5-year average following net injections of 54 Bcf.

• Stocks in the Producing Region were 74 Bcf above the 5-year average of 1,030 Bcf after a net injection of 44 Bcf.

• Stocks in the West Region were 13 Bcf above the 5-year average after a net addition of 14 Bcf.

At 3,521 Bcf, total working gas is within the 5-year historical range.

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