For this seven day report period, energy prices across the board dropped. The 12-month average price for natural gas at the Henry Hub well-head fell 4%. Natural gas has now dropped 6% in two weeks. The trading prices for peak power on the PJM electricity grid fell 3.9%. Crude oil fell from $101/barrel to $95/barrel.
Analsyts seemed to agree that this week's price decline was tied to the disappearance of last week's heat wave. According to BENTEK Energy Services, the power plant sector consumed 9.6% less gas this week than the previous week. In other words, the air condtioning load was less this week and thus less natural gas was consumed by the power plants during this week's production process.
There are many variables that impact energy prices. During this time of year, weather is a huge wild card. However, analysts are also watching the pace of the economic recovery. Stay tuned.