Will Natural Gas Prices Rise This Year?

Will Natural Gas Prices Rise This Year?

As the hot days of summer dwindle away, and having seen a rather uneventful hurricane season, it should come as no surprise that natural gas prices have failed to break out of their recent trading range in sub $4 territory. Great news if you need to lock in a new business electricity contract. Not so good for the big producers!

Lot’s of variables weighing on the market, but right now it feels like we would need to see something pretty dramatic to spark a rally. It will definitely happen, it’s just a metter of time. One can never be sure when things will change, or what will send us higher, or lower. Keeping an eye on the domestic economy, and the changing appetite for treasuries reminds us that there is a good chance investors attempting to dump treasuries, would look for commodities as one of the logical defensive hedges against inflation.

Time will tell. Watch for upcoming posts about some of the less obvious risks that could quickly move the market. It will be important to stay in the loop if you have not shored up your business electricity renewal for any term that expires in the next 12 months.


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