Politics, trade, and dynamic weather patterns bombard our news stations and make us question how changes will impact our daily lives. Most of the time, we have cause to worry—but should these concerns extend to your energy bill?
For the most part our subject areas tend to rest in a relatively stable rate. However, Liquid Petroleum Procurement Specialist at Shipley Energy, Mike Dombroski, recognizes natural gas as a “bullish” market due to its direct relationship with weather. If a sudden disturbance or disaster were to occur, prices could jump potentially to 30% by the end of the day. Besides natural gas, Dombroski assures us that it seems the other markets have “found their place”.
However unpredictable weather can be, looking into the extended forecast can be an excellent predictor of what may happen in the energy market. Looking into the near future this week, temperatures are supposed to be slightly above average for June, which heightens the likelihood that HVAC services will be needed.
Unrest in the Middle East has prevented oil prices from dropping amidst an oversupplied market. Refineries are producing oil in excess but are not projected to change output. OPEC is meeting on Friday, June 5th, and if they decide to change production limits you should expect to see a dramatic reaction in prices. Book your flights to Vienna and get on the right side of OPEC Delegation Heads…an unexpected change here could impact prices by as much as 10%!
Along with the impending heatwave (which may be hard to believe after this rainy week but have faith) natural gas prices are expected to increase to compensate for the change in temperature. As previously mentioned, this market tends to be more inconsistent so prepare for anything and hope that Mother Nature will be more cooperative than this past winter.
Sadly propane is coming off new lows for the year, but supply is high due to the preference of selling Natural Gas Liquids over crude oil. Canadian propane is selling for less than its traded index, so this will be an interesting situation to observe in the days to come.
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