pArticles - Energy Market Summary

pArticles – Energy Market Summary – Irma Drops Demand, Winter Weather To Come

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The Scoop – Last week Hurricane Irma caused a 4% drop in demand as 67% of the power plants in Florida use natural gas as their fuel source. (See Chart Below) The lowering of demand, mild weather & huge injections have led to pricing staying flat. Winter weather predictions are the next major risk to price inflation, so stay tuned.

Strategy Advice The EIA raised its price projections for ’18. Consumption growth prediction is 1.8% higher than ’17 mostly due to a colder winter assumption. Also, rising LNG exports due to Cove Point Maryland facility & Cheniere’s Sabine Pass 4th train being fully operational. This year is the year to lock up long term.  

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