Onyx Power and Gas Consulting continues a weekly series providing the Short Term Energy Outlook as of January 10, 2016. This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.
Prices and temperatures:The front-month natural gas contract for delivery at Henry Hub declined 23 cents per million British thermal units (MMBtu) from December 1 and settled at $3.27/MMBtu on January 5 (Figure 4). The monthly average natural gas spot price in December increased $1.04/MMBtu from the November average.
Both natural gas futures and spot prices rose in early December because of forecasts of much colder-than-normal weather for mid-December. However, these factors affected spot prices (which represents the price for very near-term delivery) more than they affected futures prices. U.S. heating degree days (HDD) averaged 23 HDD above normal for the two weeks ending December 22, which contributed to higher natural gas demand and the largest December net inventory withdrawal since 2013, putting upward pressure on prices towards the end of the month. The January futures contract expired on December 28 at the monthly high of $3.93/MMBtu, the highest front-month futures price settlement since December 2014. With the front-month contract moving to February delivery and weather models showing a generally warmer outlook in the eastern part of the country than previously expected, futures prices again declined in the first week of 2017. The wide range in prices in December and early January shows the influence of changing weather forecasts in a market with tightening supply and demand fundamentals.
The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!