pArticles - Energy Market Summary

pArticles – Energy Market Summary – Winter Gave Us a Pricing Break

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The Scoop

Natural gas storage, most of it located in salt caverns on the Gulf Coast, is a big factor in the week to week price movement. We are at the end of the season called withdrawal, whereby more natural gas is pulled out of storage than put in. This corresponds with the end of winter and spring setting in.  Pay close attention to the next couple of Thursday’s, this is the day of the week that the government gives the storage number.  It is predicted that prices should moderate and might pull back slightly.

Strategy – Spring is a good buying opportunity as the winter gave us a break.  If this winter would have been normal or below normal temperatures in the northeast, all pricing would have jumped significantly.

 

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