Another week, another price increase -- this time above the $3.00 mark. And the EIA says more price increases are on the way.. The Beacon, 05/17/2021

The Headline:   Last week saw prices continue to creep up on the front end of the forward curve.  The 12-month strip price broke through the $3.00 resistance point, and strong LNG exports continue to push prices up.  The US Energy Information Administration’s most recent Short-Term Energy Outlook report says: “We expect the Henry Hub spot price will average $2.78/MMBtu in the second quarter of 2021 and will average $3.05/MMBtu for all of 2021, which is up from the 2020 average of $2.03/MMBtu.”     

The Bottom Line:    That is a 50% increase from 2020 natural gas prices to EIA forecasted 2021 prices. We are urging customers to move away from variable rates and short-term contracts and lock in long-term rates before a bad hurricane season, a hot summer, or regulatory announcements adverse to the oil and gas industry push prices up.      

Click HERE for your free copy of the Beacon.

Click HERE to contact Lighthouse staff about your energy needs.