Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 26
We Know Energy
July 8, 2011 Energy Update
In this Issue
Editor's Note
Natural Gas and Electricity Prices Perform a 180 Degree Turn This Week.
Natural Gas
EIA Gas Storage Update - Data Released July 7, 2011
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values For the Forward 12 Months
NYMEX 12-Month Average Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Weather
Local Cooling Degree Days*
Recent Features
WGES Ranked #1 Supplier (June 3)

 

WGES Adds New Service Territories in Pennsylvania (May 13)




WGES President Harry Warren Interviewed by Washington Post about Innovative Natural Gas Enhancement (May 6)

Our New Wind Power Partners
Baltimore Monthly Meeting House of Friends Homewood
Bethesda United Methodist Church
BrightStar Healthcare
Capital Restaurant Holdings, Inc.
Embassy of Egypt
Embassy of Finland
Hay Adams Hotel
Paul Associates
Prince George's County Libraries
Yard's Brewing Co.

Visit wges.com/partners for full list of WGES Wind Power Partners.

 
To find out more about a green power purchase for your organization, call 703-793-7578, or visit wges.com/commercialwind.

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
Editor's Note
Natural Gas and Electricity Prices Perform a 180 Degree Turn This Week.
Week in review for period of July 1 - July 7, 2011

In last Friday's newsletter, we reported that the 12-month average price for natural gas rose 4% and the  price for peak power on the PJM rose 1%. However, the market did a 180% turn this week. For this 7 day report period, the 12-month average price for natural gas at Henry Hub fell 4% and the price for peak power on the PJM grid fell 1%.

The analysts pointed to a couple of  variables that placed downward pressure on energy prices this week. For starters, EIA reported, for the third week in a row, that this week's natural gas injection was much higher than average. In fact, this week's gas injection was 30% higher than a year ago. (Please see our storage article for more details.) In other words, the supply component  was looking good this week.  

Next, analysts were concerned that the upcoming economic reports would indicate that the economy is growing more slowly than expected. A sluggish economy means low demand for natural gas and electricity. If  natural gas supply is high and demand is low, we tend to see downward pressure on energy prices.

However, as you know, commodity prices are very fickle. Energy prices are likely to move upward as soon as the marketplace receives word that a heat wave or a hurricane is on the way. For now, we are all very happy that energy prices are still hovering near the 7 year lows.

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