Energy Market Update: Factors and Trends to Consider this Winter
Guest Blogger: Alex Paciga Communication Specialist, APPI Energy As we move into the winter season, there are a variety of factors that will influence natural gas (and thus electricity) prices across the nation. Weather, production, and supply are likely the most influential factors on natural gas prices this winter. We’re expecting a cold winter, and though natural gas production is at record highs, we’re entering the season with historically low natural gas supply levels. Additionally, though it’s more a long-term factor than the preceding three, we must consider the effect that increasing natural gas exports will have on domestic prices. Winter is traditionally a time of price volatility and, generally, higher electricity and natural gas prices prevail during the colder months. As 50% of U.S. households and businesses are heated by natural gas, and the price of natural gas is directly linked to the price of electricity, everyone has a vested interest in understanding what the mar...