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

Monitor the Market
SEIZE THE MOMENT:

Timing is everything, especially in the energy market. Unfortunately, there is never really a “perfect time” to buy energy (which is why it’s important to always be monitoring energy prices).

Focus on the fundamentals and key drivers. Key price drivers in the 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

 

HERE’S WHAT TO DO:
  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. Lookout for buying opportunities – Let action drive market fundamentals, not emotion. Usource helps you stay focused on the fundamentals in the market place 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 you insights and recommendations you can act on.

About the Author

Jesse Ram has eight years of experience in analyzing large datasets, evaluating energy programs and developing reports. Prior to joining Usource, he was a consultant with Conservation Services Group and NMR Group.

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