Energy prices are steady for the week, but fundamentals suggest more increases are coming. The Beacon, 07/12/2021

The Headline:   Energy prices went up slightly in almost every month in the forward curve.   Demand is still up, LNG exports are still strong, storage levels and drilling rig counts continue to be unimpressive, and continued warmer temps seem likely to drive further price jumps.           

The Bottom Line:    The 12-month term is almost to $3.50.   Long term prices are still trading at only 25% above the 10-year low – this makes them still attractive, but also leaves more room for upward market movement.   Variable rates and contracts nearing expiration are risky – better to lock in a longer term to avoid another price run-up.        

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