Energy Updates - Energetek

Half of our job is education. We want you to be “in the know” when it comes to the energy market. It is important to us that our clients understand the “why’s” behind a rate. This is why we post energy updates; so our clients can understand when to buy in, how much to buy, and upcoming trends.

August 2022: Upward Momentum for EU Gas Prices

Causes for Rally:

Russia stopping gas flow
Cold winter with not enough output

What this means for the US – pressure on gas prices as higher-than-normal European export demand is expected to continue, while domestic supplies remain below the 5-year average.

Sources: Nick Gerome, CTA, Taurus Advisory Group & www.reuters.com

May 2022: Upward Trend of Energy Prices

Market Impactors:

Russia conflict with Ukraine
Lack of fuel sources
Interest rate increase
Bounce back from COVID

How to combat – Lock in non-commodity energy components with future heading plans to capture market dips

As we can still see an upward trend in power prices, there is a downward trend in national REC pricing

May 2021: Natural Gas-Fired Generation On The Decline

Natural gas markets are in retreat this week as prices fail to break through 3 dollars, a major resistance level. We think prompt month natural gas prices will trade within the range of $2.50-$3.00 this year with spring and summer contracts struggling to remain elevated.

Links:

The Power Move blog article- https://etekenergy.com/market-update-natural-gas-fired-generation-on-the-decline/

Sources: U.S. Energy Information Administration, Nick Gerome, CTA, Taurus Advisory Group

November 2020: Managed Energy Buying for Future Markets

Mild winter temperatures, COVID, and cheap natural gas accounted for competitive rates in 2020. As we enter 2021 where futures show volatility, energy users are opting for a managed and layered approach that maintains budget goals but most importantly provides optionality through 2024 and beyond.

Links:

The Power Move blog article- https://etekenergy.com/a-managed-approach-to-energy-buying/

Source: Direct Energy

August 2020: Natural Gas on the Rise

New York Mercantile Exchange (NYMEX) reporting a 70-cent natural gas increase of the price for the 12-month strip (September 2020-August 2021) from $2.20-$2.90. This is not a positive indicator as we are knee-deep in hurricane season and the looming economic effects of COVID-19 are starting to settle in.

Links:

The Power Move blog article- https://etekenergy.com/august-energy-briefing-natural-gas-on-the-rise/

March 2020: NYMEX 12-Month Lows

Mild winters coupled with COVID-19 push the energy market to lows last seen in 2015-2016. NYMEX 12-month strips are currently averaging $2.07/MMBtu, while the past 5 years has averaged $2.80/MMBtu.