Where’s the Floor

February 9, 2015

Natural gas is a commodity

That is traded on the nymex

When people say…

Natural gas is up 5 cents

Or

Natural gas is down 5 cents

They are talking about

The price of natural gas

Out of the ground

Which is traded

On the nymex…

If you flash back

5 to 6 years ago

You will probably remember

Natural gas prices were

Thru the roof

Trading around

$13 – $15 a dekatherm

Slowly

Over time

The market began to drop

It hit the floor

In May 2012

When the nymex

Hit $2 a decathem

(Nobody knows where the floor is

Until you pass it)

Since May 2012

We have been on a roller coaster

The nymex climbed up

To over $5.50

In Feb 2014

Then….

It began a slow descent

As of today

The nymex is

Trading at $2.59 a dekatherm

The point I am trying to make is….

The nymex is once again

Hovering

Just above the floor

It hit in May 2012

This is good news for

Those buying

Natural Gas and Electric

In the deregulated market

With the winter winding down

And with a glut of gas

In reserves

Prices are very competitive

This is a great time

To save

$$$$Money$$$$

Will gas go below the $2 a dekatherm

I wish I had a crystal ball

In a market

Where timing is everything…..

Now is a good time to be

Locking in future savings

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