The Energy Information Administration (EIA) reported yesterday that 127 BCF of gas was withdrawn from storage last week, compared to the market expectation of a 119 BCF withdrawal. As a result, natural gas futures rallied Thursday— up 5.9 percent—and prices continue to edge higher today. The withdrawal rate was well below last year’s 230-bcf draw. Read the Rest…
Electricity Rates Blog
Natural Gas Loses Yesterday’s Gains
According to a report from Dow Jones Newswires, natural-gas futures prices were trading lower Friday on expectations that the rest of winter weather won’t be enough to put a dent in the oversupply of natural gas in storage. Prices failed to follow through on Thursday’s sharp 7.2 percent rise, as updated temperature outlooks show below. Read the Rest…
Electricity Prices at a 10 Year Low
We are currently seeing electricity prices as low as we have seen in the past 10 years. In Texas the price of electricity is tied directly to the price of natural gas. In other markets such as Pennsylvania the price is also tied to natural gas although the correlation is not as tight as it. Read the Rest…
Electricity Rates Continue to Drop Thanks to Natural Gas
As blogged about in previous entries, the relationship between natural gas and electricity is pretty simple: electricity prices mirror the gas market. Lately, a shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent. According to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit. Read the Rest…
Natural Gas Inventories Overstretching Storage Capacity
In natural gas news, inventories continue to increase while prices continue to decrease. With an already robust natural gas supply and demand for natural gas-fired heating weak, analysts are starting to question whether there are even enough places to store U.S. inventories this year. Normally during the winter, the demand for natural gas rises as. Read the Rest…
