Currently wholesale natural gas is around $2.75/Decatherm (11/14/16), having peaked on October 13th at $3.53/Dth. The October peak was more than twice the price of the lowest point in March this year – $1.64/Dth! Obviously natural gas has been very volatile in 2016, so choosing the right time to buy is critical.
Viewed against 2016 prices only, current gas prices are relatively high, BUT viewed in historic terms, even $2.75 is a very good price compared with the 9-year average low point of about $2.90/Dth.
We researched when the lowest prices occurred each year and the results were surprising. Out of the 9 years reviewed, 5 of the lowest months were late in the year and only 3 in the spring.
This suggests that holding an auction in November or December may be a smart decision – provided cold winter temperatures don’t arrive early.
Without question, the most important strategy for getting good gas pricing is to instruct your Energy Consultant to assemble and store all your account data and usage data complete and ready-to-use – including your projected monthly gas volumes (targets).
If your data isn’t ready to go, it will take suppliers about a week to provide pricing, by which time the opportunity may have gone; but if it is ready, you can get immediate pricing whenever a market opportunity comes along.
In fact, if you make your data available to us, we can get indicative pricing at no cost and no obligation. Why not reach out to us before prices rise?
Here is a link to an article discussing the 10 factors that impact Global Energy Markets. 10 economic factors