Energy buying strategies in a volatile market

Hans RottmannPer last week’s Energy Market Update, I have provided some energy buying strategies in the current volatile market.

Market Overview
The trend in natural gas and electricity prices has been favorable for most energy buyers over the last month. NYMEX natural gas futures have fallen significantly and both regional gas and power prices have followed the downward trend. The key reasons are that weather has been moderate and storage injections have been much larger than a year ago.

The details are in the numbers below (all prices are in MMBtu):

Prices as of 6/24/13 and % change since 5/24/13.

Prompt Month $3.70 -0.58
12-Month Strip $3.89 -0.47
Calendar 2014 $4.04 -0.23
Calendar 2015 $4.21 -0.22
Calendar 2016 $4.38 -0.19

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