TRENDS
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Bullish Factors:
- End of summer A/C demand
- Upcoming winter heat demand
- Economy strengthening
- Potential for natural gas production cuts
- NYISO’s increased capacity charges for power
- Coal plant retirements
- Future LNG (liquid natural gas) exports
What does this mean in terms of locking a price now?
1. Natural gas prices are at an all time low.
2. Mild weather and storage projections may reverse.
3. Risk of a colder than normal winter.
4. Long-term outlook is bullish.
For budget reasons, we believe it is a smart idea to fix at least part of your natural gas and electric prices now. The wildcards of weather, geopolitical events, US and global economies and the financial markets could turn the current market around quickly.
Bearish Factors:
- Fall temperatures predicted to be normal
- Plenty of natural gas in storage
- Short term markets pushing long term prices lower
- Increased efficiency of equipment
MARKET DRIVERS SEPTEMBER 2013
