Continued warmer weather brings lower prices - Will they rise as retail demand picks up? The Beacon, 03/08/2021

The Headline:   Last week’s warmer weather and a smaller-than-expected natural gas storage withdrawal pushed natural gas and power prices down 2021-2024, although prices are up after that.  Gas storage levels are below last year’s numbers and the 5-year average, and as power demand starts to pick up with more facilities reopening, the risk of possible higher prices this spring still looms.     

The Bottom Line:    In the short term, weather-driven lower prices are good news for energy buyers.   Low gas storage levels, low drilling rig counts, and increasing demand as the US rebounds from COVID-related shutdowns suggest higher prices may be on the way in the next few months.   We are recommending that you lock in your electricity and natural gas rates, especially if your contract starts any time after late 2021.      

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