When is the Best Time to Buy in the Energy Market?

When it comes to energy buying, timing is everything! Unfortunately, there is rarely a “perfect” time to buy energy. That’s why it’s important to understand the market, monitor energy prices, integrate renewable energy sources and make strategic buying choices.

Seize the Moment

Focus on the fundamentals and key drivers. Key price drivers in the energy market are weather, natural gas production, and storage.

Bearish Market Drivers- Supportive of Price Drops

loss chart 

  • Year-over-year natural gas storage reduction
  • Minimal natural gas storage withdrawals
  • Natural gas production growth

 

Bullish Market Drivers – Supportive of Price Spikes

profit chart

  • Cold weather can provide momentum for higher pricing
  • Growth in exports of LNG and pipeline flow to Mexico
  • Generation mix focused on natural gas, heightens winter price risk

 

Best Practices for Timing Energy Buying

  1. Monitor the market – When you’re in the position to take advantage of favorable price movements when they occur, you avoid having to be a price taker down the road when the market may be less favorable.
  2. Look for energy buying opportunities – Let action drive market fundamentals, not emotion. Usource helps you stay focused on the fundamentals in the marketplace and avoid gut decisions when analytical insights would serve you better. Our process is grounded in a deep understanding of supply and demand drivers in energy markets.
  3. Trust your energy advisor – When in doubt, always contact your energy advisors if you’re worried about the market Our energy advisors are always monitoring the market and can deliver insights and recommendations that you can act on.
Energy Marketenergy strategy

About the author

Jesse Ram

Jesse works with clients to help them meet their sustainability goals while reducing expenses and generating revenue through community solar, land leases, and distributed generation resources. He provides clients with analytically based insight and actionable information to reduce overall energy costs and improve performance.

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