For the second week in a row, energy prices fell. For this seven-day report period, the 12-month average price for natural gas on the NYMEX fell 5.6% and the 12-month average price for peak power on the PJM fell 1%.
Natural gas and electricity prices were unable to spike upwards this year because winter demand never occurred. In fact, according to the U.S. National Climatic Data Center, this was the fourth warmest winter on record. (The warmest winter on record was 2000, in case you're wondering.)
Because of these warmer-than-normal winter temperatures, less natural gas was pulled from storage to meet the country's low heating demand. Thus, we are expected to end the winter season with the largest natural gas inventory since 1983.
With high supply and low demand, natural gas and electricity prices are hovering near 10-year lows. It's hard to imagine that prices can go much lower.