Natural Gas Prices Rise

October 23, 2009

As reported in Courier Post

NEW YORK — Sparked by a cold snap in the northeast, home heating fuels are getting more expensive even though supplies are well above normal for this time of year.

Heating oil futures spiked with crude oil contracts last week. Retail prices followed, surging an average of 10.2 cents per gallon for residential customers by Monday, according to an Energy Information Administration report released Thursday.

Natural gas prices rose everywhere for retail customers, with hikes of between 31 cents and $1.14 per each million British thermal units in the lower 48 states.

Our Perspective:

Winter is setting in and we are beginning to see Natural gas prices rise based on anticipated demand. Overall, this is still a good time to lock in natural gas prices in the deregulated market.

With prices being at a 3 to 4 year low, locking in your price gives you protection against market fluctuations and produces savings over the lifetime of the contract. Many of our clients are looking at 12 month to 24 month contracts.

Should you go back and look at your natural gas prices in 2008, you will find that you were paying over $12.00 a decatherm ($1.20 a therm). Currently the prices can be found in the high $7 range to low $8 range based on usage and demand. As you can see, this is close to a 30% savings.

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