During the first few weeks of May, energy prices pushed upward. However, the Bears have made some moves during the last two weeks. For the second week in a row, natural gas and electricity prices fell. For this seven-day report period, the12-month average price for natural gas on the NYMEX fell 3.3%, while the 12-month average price for peak power on the PJM fell 1.6%.
One reason for this week's price fall was the newly revised weather forecast. Forecasters are now calling for less severe temperatures than originally expected. This new forecast, coupled with the fact that natural gas storage levels are still near record-high levels, kept the downward pressure on energy prices this week.
As we've just seen, weather can have a big impact on the future direction of energy prices. Summer officially starts on June 20. Stay tuned.