A Small Increase in Prices, but More Rigs in the Field -- The Beacon, 1/18/2021

The Headline:   Natural Gas prices rose again slightly last week, pulling electricity prices up as well.  
The recent EIA forecast suggests that, while rig counts are starting to climb, we may see lower-than-average gas storage levels and higher prices in the spring.      

The Bottom Line:    Prices for gas went up slightly across the entire forward curve through 2033.   Prices are still attractive, especially on the longer terms - the 60-month term is trading at only 12% above the 10-year low.  Low drilling rig counts saw another big increase, and are above 500 for the first time since April 2020, but are still only roughly half of last year’s count.  The market is worried about the new EIA forecast – we will need more drilling rigs in the field if demand goes up on cold weather.  Locking in your electricity and natural gas rates ASAP to lock in savings would be a good idea.       

Click HERE for your free copy of the Beacon!