The stock market in the U.S. and the rest of the world has experienced a very difficult week and the energy markets followed close on their footsteps. Two weeks ago the NYMEX fell and one week ago it rose. This week the 12 month average price for natural gas on the NYMEX fell 4% and the 12 month average price for peak power on the PJM grid fell 2%.
Energy prices continue to be a great buy since they remain at the lowest seen in seven years. The build to storage stocks pushed the NYMEX September gas futures contract down. Demand still remains low domestically and internationally due to slow economies.
The weather has been seasonable which has helped in keeping prices down. Hurricane season is still upon us and always poses a disruption to prices. There is some concern relative to a tropical storm forming near Jamaica with an 80% chance it could develop into something more in the next 48 hours. If you are considering locking in prices, now is a great time.