Weekly Energy Market Update
The Fundamentals
Weekly Natural Gas Report
- Inventories of natural gas in underground storage for the week ending March 22, 2024 are 2,296 Bcf; a withdrawal of 36 Bcf was reported for the week ending March 22, 2024. Gas inventories are 669 Bcf greater than the five-year average and 430 Bcf greater than the same time last year.
Why Buy Now
Having trouble closing deals due to high rates? We’re here to provide you with the information you need to answer the recurring question; Why buy now?
We break down the answer to this question so you can come to the table with all the information you need to help your customer navigate these unprecedented market conditions.
Substantial Increase in Electricity Demand Forecasted
The electrification of cars and the expansion of data centers are leading to a significant increase in electricity demand, which will put a strain on power grids and resources. The heightened demand is likely to result in higher electricity prices. Consequently, businesses will face increased operational costs due to these rising electricity prices.
Natural Gas Exports are Soaring
U.S. natural gas exports are poised for significant growth, with over 12 billion cubic feet per day of new capacity underway, nearly doubling the current levels by 2027. As global demand for natural gas rises, the U.S. is likely to become the preferred supplier. Potentially leading to higher domestic prices if supply doesn’t keep pace with the growing demand.
Higher Prices Are Always Just Around The Corner
One thing is certain with natural gas and electricity prices: when prices are low, much higher prices are just around the corner. Currently, natural gas prices are at the low end of the historical range. This means that if a customer is thinking of waiting to purchase their future electricity and natural gas needs, they might be taking a bigger risk, hoping for a small reward.
In Summary – Why Buy Now
There is a very high probability that prices could move higher this winter from decreasing supply and increasing demand. With the market at the lowest levels in over two years, right now is a great opportunity to take risk off the table and purchase all or a portion of their energy supply costs.
Lock In Your Energy Rates Now
By working with an experiencing BOX energy broker, you can choose the solution that gets you the best deal while also satisfying your energy needs and specifications.
Broker Online Exchange has a powerful network of over 90 suppliers throughout all deregulated markets. Our Brokers have instant access to over a million price points, as well as the ability to custom price any load size or shape. Our complimentary rate analysis service enables your BOX Broker to assess your energy spend. Your BOX Broker can procure the supplier, product, and rate that best fits your needs, while also saving you money.
Get connected with an experienced BOX Energy Broker today to take control of your business’ energy costs and start saving money.
