Throughout 2017, we’ve seen the natural gas supply and demand balance continue to tighten. Natural gas production slowly climbed from 2016’s low, while demand for the fuel remained strong. Wholesale natural gas prices eventually steadied mid-year and have been trading in a narrow range since. As winter approaches, though, colder weather could increase the market’s volatility.
Factors to watch in the months ahead include:
- Lower natural gas storage injections compared to the five-year average caused a 20 percent surplus to shrink to just 1.2 percent.
- NOAA is projecting a 55-60 percent chance of La Niña developing this fall or winter, which would drive colder conditions in the Midwest and Northeast.
- Continued pipeline buildout could reduce volatility in parts of the Midwest and Northeast, but upside risks remain, especially for New England.
- Working risk tolerance into your procurement strategy will help shape contract decisions, especially during times of increased volatility.
Our webinar will help you proactively prepare for these potential challenges over the next few months. Join me for a discussion of these issues as well as an overview of foreseeable winter 2017/2018 energy trends.
You’ll leave with:
- A better understanding of the market fundamentals heading into this winter
- Insight into how market forces will influence potential energy price movement
- Clarity on how risk tolerance can shape your procurement strategy
This session will be followed by a live Q&A, so be sure to bring your questions. We hope you’ll join us this Thursday, October 12th, at 11:00 am PST / 2:00 pm EST!