Opportunity in Crisis -- Weekly Energy Report, 04/06/2020

Demand destruction continues to hold energy prices low, with all of the annual strips staying below $2.40/mmbtu, and the 12-month strip closing Fridat at $2.25/mmbtu. Across the forward curve, prices haven’t been this low since 2016. Fundamentals, however, are worrisome for buyers: Gas in storage slipped a little last week, drilling rig count saw another large decline, and warmer-than-normal weather is forecasted for most of the country. With production down, storage volumes may decline, and prices are at risk of jumping sharply as stay-at-home orders expire and the COVID-19-related demand destruction starts to fade. Business owners would be well advised to lock in fixed prices for as far forward as they can — this opportunity may not last, and history shows it is unlikely to come again. Please stay safe and healthy, and call us at 937-709-0098 x701 for help in getting your electricity and natural gas prices locked in and your savings started.

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