Is the Window Starting to Close? The Beacon - April 13, 2020

Happy Easter Monday, Everyone — We saw a broad increase in wholesale natural gas prices, and the front end has increased enough to pull the market into a basically flat state with the 24-month term currently the most expensive. Storage levels are holding, with a small but larger-than-expected gas injection on the last report. Rig count continues to drop, with last weeks report showing another 50+ rig drop — the rig count is down by more than a third in the last 4 reports. Weather may help offset the COVID-19-related demand destruction this week — almost all of the country is expected to see well colder than normal temps to fire up those heaters. Put this all together, and you get a picture of a market that is starting to normalize from the unusually low prices of the last few weeks, and fundamentals (cold weather and low rig count) that pose a risk of prices increasing sharply in the near-term. If your power or natural gas are on a variable utility rate or a variable supplier rate, or your contract for either commodity expires in the next 18 months, it is time to buy. Give Lighthouse a call at 937-709-0098 x701.

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