Although natural gas storage has refilled at a record pace, we still view the energy market as being more likely to move up than down, especially through this winter
Houston, TX (PRWEB) August 29, 2014
EMEX, LLC, a leading technology firm that is revolutionizing how energy is being bought and sold through its live Exchange, announces that due to current favorable natural gas forward-contracting opportunities, it is counseling clients to be prepared to take advantage of natural gas prices before the end of October, when the risk of increased prices may significantly heighten. Additionally, EMEX has accelerated its opening of additional natural gas markets to help more businesses take advantage of the favorable market conditions.
In light of last winter’s record cold and additional analysis performed by EMEX, EMEX is urging natural gas consumers to seriously consider locking in rates for the next 12 months and beyond. EMEX’s analysis suggests that current market conditions through the next 6 weeks will provide prudent opportunities to guard against potential gas price increases that historical trends suggest could occur this coming winter.
“Although natural gas storage has refilled at a record pace, we still view the energy market as being more likely to move up than down, especially through this winter,” explained Phillip T. Golden, Director of Risk & Product Management at EMEX. “The failure of an El Niño pattern to materialize, coupled with increased coal plant retirements, tightening environmental regulations, and calls for another colder-than-normal winter in major population centers provides support to the natural gas markets from our view point.”
Looking back over the past 6 years, EMEX analyzed average number of heating degree days for the withdrawal season (November-March) and average BCF withdrawal/heating degree day during the peak winter months (December-February). Based on this analysis, EMEX then identified an above-normal winter, an average winter, and a slightly below-normal winter to estimate the potential total withdrawal that could be seen this coming winter. Presuming that at the start of the withdrawal season there are 3,400 BCF of natural gas in storage as predicted by the Energy Information Administration, this would result in natural gas storage levels at the end of this coming winter of between 2,200 BCF (assuming a warmer winter than normal) to 1,400 BCF (assuming a colder-than-normal winter). If the forecasts of a colder-than-normal winter pan out, the market would be at the second lowest storage levels after the winter since 2008.
EMEX specializes in consulting with commercial, industrial, and governmental clients to help them manage their energy cost risk for both electricity and natural gas markets which are open to competition, through its Flagship platform, The EMEX® Reverse Auction.
About EMEX, LLC
EMEX, LLC is a leading technology firm that is revolutionizing how energy is bought and sold through its live Reverse Auction Exchange. The Exchange creates a real-time trading environment that compels sellers to compete, resulting in prices dropping precipitously for businesses procuring energy. EMEX continues to develop new platforms that specialize in exchanges for all industry types in order to provide a real-time buying and selling environment for all commodities, products, and services. For more information, please visit: http://www.EnergyMarketExchange.com