The demand for natural gas is solid. According to, NOAA, weather projections show warmer than normal temperatures into the next couple of weeks across most of the U.S. which will keep gas fired power generation strong. Exports of natural gas have been growing as additional liquefied natural gas (LNG) capacity has come on line. Storage has made up most of the five-year deficit, and production continues to be moving along at record levels. These fundamentals are keeping NYMEX futures prices just above historic lows, although there has been a recent up tick due to warm weather.
NYMEX: Spot and Strip Prices
8 to 14 Day Forecast
What Does This Mean for You?
Forecasts for this winter are ambiguous at this point. It’s important to have your winter months hedged to avoid potential budget busting price spikes if weather become frigid. With that said, future year prices continue to trade relatively low making it an attractive time to look at executing outer year contracts or hedges.
Let us help!
As a Usource client in an active hedging contract, our advisors would work with you to develop a procurement plan based on your specific risk tolerance and budget objectives. We would then monitor the market for you to ensure hedging decisions were made at the appropriate times and volumes. Find out if an active hedging strategy is right for your business, contact your energy advisor or email us a email@example.com.