Will Energy Get More Expensive this Spring? The Beacon, 02/01/2021

The Headline:   Last week, natural gas prices went up slightly through early 2022, but were flat to slightly down after that.  Electricity prices should still be attractive this week, with the longer terms still the best buy. Gas storage levels are holding between the 5-year average and the 5-year max, but worries persist that higher prices may be on their way.      

The Bottom Line:    February 2021 gas closed trading at $2.76, and prices over the next year are up slightly based on colder short-term weather forecasts.  Prices are flat to slightly down after Q1 2022, and the longer-term contracts are still very attractively priced.   The 60-month term is trading at only 12% above the 10-year low.  Low drilling rig counts saw another small increase, and are holding above 550 for the first time since April 2020, but are still at only 54% of last year’s count.  The market is still worried about rising prices through the remainder of the Winter and Spring, and we are still recommending that you lock in your electricity and natural gas rates ASAP.       

Click HERE for your free copy of the Beacon!