Energy Market Update

Drill down into how to optimize energy services.

February 2024

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients. The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics:

January 2024

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients. The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics:

December 2023

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients. The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics.

Market Overview

There has been a recent pullback in the nearest months of natural gas futures market prices.  This is primarily due to lower demand from a warm December, and above average end of winter natural gas storage projections.  Temperature forecasts from NOAA for the lower 48 states show January through March to be above average across the northern tier.  Natural gas spot market prices should continue to provide short-term bargains.

Consistent with natural gas prices, wholesale power prices have declined.  In the PJM region, the generated electricity cost is about half of what it was last year.  Contractual natural gas with generators may have delayed the cost decline, but it’s a good time to check rates.  For residential rates in Pennsylvania, go to PAPowerswitch.com.

Crude oil averaged $82/b in 2023 and is expected to only increase slightly in 2024.  Recent OPEC+ global oil production cuts may pressure oil pricing over the coming months.  According to the EIA.gov, if oil prices remain stable, gasoline prices may decline from an average of $3.53/g in 2023, to $3.36/g in 2024.  We will all be watching this closely.

On 12/14/23 the PJM Generation Fuel Mix shows that natural gas is coming in at about 45%, while renewables are less than 8% of the total mix. (chart on left)

Natural Gas Storage Update:  

The storage report for week ending 12/8/23 shows a withdrawal from storage of 55 billion Cubic Feet (Bcf).  This puts levels above the 5-year average by 7.6%, and 7.2% above the same week last year.  The current percentage of total capacity is 85% at 3,664 Bcf. 

The December natural gas Monthly Settlement Price (MSP) was determined on Nov 28th, at $2.706/Dth, down 45.8¢ from the prior month.

The chart below shows the natural gas storage levels going back 24 months.  Expectations for above average storage levels to continue through 2024.

The chart below shows the natural gas storage levels going back 24 months.

The chart below shows the natural gas NYMEX Futures historic to current market average strip prices.

Market Opportunity

Contract purchase rating is good, with the lowest prices for the shorter terms.  Longer terms will provide cost assurance during energy market   uncertainty resulting from geopolitical events.  Evaluate your risk tolerance to determine the best terms for your energy purchases.

The market opportunity is a ranking of how we perceive timing of contract purchases for natural gas or electric. Information provided by the Energy Division of Edge Insights, Inc.

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients. The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics.

Note: Our clients have the option of purchasing 100% of their electricity from renewable sources, such as wind and solar. Speak to your Edge Insights representative for more information.

Benchmarking electric and gas consumption will let you quantify your energy efficiency efforts. Talk to your Edge Insights account representative to learn how you can start a “Green Initiative” program for your business.