It may come as no surprise to anyone that the El Niño we are experiencing is expected to be one of the top three strongest episodes for the Niño 3.4 region since 1950. According to NOAA and many other models, the strong, mature El Niño we are currently experiencing will continue through the Northern Hemisphere this winter and then slowly roll off into an El Niño-Southern Oscillation (ENSO)-neutral stage in late spring or early summer.
From NOAA's Climate Prediction Center: Seasonal outlooks indicate an increased likelihood of above-median precipitation across the southern tier of the United States, and below-median precipitation over the northern tier of the United States.
Gas was Slowly Creeping Up This Morning
There was a net decline of 76 Bcf in storage this week, bringing current storage levels to 3,366 Bcf . This morning, gas was up a few cents, with Jan16 contract up 3-cents and the 12-month strip up 2-cents.
What does this mean? Price are still low, but with the morning up tick in gas, now is the time to speak to your Incite Energy consultant about your energy management program.
What's gas doing? Yes, there was an early morning run up, but overall, prices are still very low.
Is this small run up a sign of future run ups? We can't say for sure, but we think now is the time to start speaking with your consultant about your energy management program and how we can mitigate risk in your current and future contracts.
If your contract is up for renewal now, then we should definitely discuss what product will help you continually realize savings.
US Spot Prices at Different Hubs
Gas at HH has rebounded since dipping below the $2.00 mark on Tuesday. In NY, gas fell off significantly, making long-term power contracts more attactive to buyers. Chicago prices lapsed on Tuesday, but quickly recovered ahead of the storage report. California is quickly working its way back to Monday's prices.
Has your company enrolled in an ERCOT ERS program yet?
Now is the perfect time to meet with our experienced Demand Response specialists to discuss how enrollment in a qualified ERS program in Texas can help you turn your energy spend into a revenue stream. The first auction period is coming up and enrollment will end in January.
Don't wait until it's too late!