Even though yesterday’s storage report came in a little lower than the analysts expected we still saw the fourth largest build up in natural gas for any October since they began reporting the numbers at an increase of 94 bcf. This is the 27th week in a row we have exceeded the 5-year average for the corresponding week.
Gas prices have dropped below the significant $3.80 level (currently trading at $3.56), and no rally in pricing or short covering has been able to move the current pricing above $3.80. Gas production remains at record levels while worldwide demand slows. North America’s weather patterns have been very favorable as well with lower high temps and higher low temps for this time of the year. Therefore, less need to use gas and electricity for heating and cooling.
Electricity prices are looking very good now and should remain low until gas spikes up above $3.80, probably during the winter months. Lock in these low rates now.