For this seven day report period, the 12 month average price for natural gas on the NYMEX fell 7%. The 12 month average price for peak power on the PJM fell 3.7%. Energy prices are looking beautiful. Natural gas prices are trading near the nine-year low and electricity prices are trading near an eight-year low.
This is the perfect storm for low prices. Supplies are high and demand is low. The domestic shale gas discoveries have pushed natural gas production to record high levels. When you mix this record high production with a mild U.S. winter, you get a gas "bubble." In fact, natural gas inventories are at record high levels for this time of year. The year-to-year surplus has grown to 13%. The surplus over the five-year average has grown to 17%.
At the risk of sounding redundant, this is truly a great time to look at the early renewal strategy with your WGES account manager.