A break in the action – prices hold steady last week. Coming weeks look likely to change that. The Beacon, 05/24/2021

The Headline:   Last week saw energy prices drop slightly in the next few months, then hold flat after that.  The 12-month strip price got back below the $3.00 resistance point.  Forecasted hot weather, stagnant drilling rig counts, average storage levels, recovering demand, and strong LNG exports all point to higher prices being likely over the next few months.        

The Bottom Line:    The EIA is forecasting a 50% increase from 2020 natural gas prices to 2021 prices. We recommend that energy users lock in long-term rates – it is likely a matter of time before wholesale prices (and your bills) jump up if you don’t have a long-term agreement in place.       

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