Weekly Energy Market Update
The Fundamentals
Weekly Natural Gas Report
Inventories of natural gas in underground storage for the week ending May 24, 2024 are 2,795 Bcf; an injection of 84 Bcf was reported for the week ending May 24, 2024. Gas inventories are 586 Bcf greater than the five-year average and 380 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.
Natural Gas Production Declining
United States natural gas production has been declining recently, marking a notable shift after many years of consistent growth. Over the past two months, the year-over-year production has decreased for the first time in many years. With increased demand from electricity load and LNG exports, the market will need increased supply or power and natural gas prices will likely trend much higher.
In Summary – Why Buy Now
There is a high probability of electricity and natural gas prices increasing in the coming months, as forecasted demand is likely to outstrip supply. Given that the market is near historically low levels, this presents a favorable opportunity for businesses to mitigate risk by securing all or a portion of their energy supply costs now.
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.
