pArticles - Executive Market Summary

pArticles – Executive Market Summary – Where will nat gas and electricity pricing go in 2017?

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The Scoop –

Happy New Year!  The always pressing question, where will pricing of natural gas and electricity go this year? Pressure factors exist on both sides. Let start with the economy.

2017 should be a great economic year for most parts of the US economy. The Purchasing Manager’s Index (PMI), came in at 54.7 for December. Anything above 50 signals growth in the manufacturing sector, thus much growth in the future. Beyond this demand factor, several other factors will continue to push prices slowly higher this year: Exporting Natural Gas to Mexico, Exporting Liquefied Natural Gas, more Natural Gas Power Plants coming on line, and more industries utilizing natural gas.

One industry example of this is the opening of new ammonia plants across the US. (Reference: all yellow symbols on map for new growth in the industry).

The counter of these growing demand factors will be the abundance of supply.

 

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