Natural Gas Hits Four Month Low
Down sharply from a high of $12.956 posted on September 29, 2005, the NYMEX twelve month natural gas strip closed at $9.751 on January 5, 2006, representing a low price not seen since mid-August 2005.
Because most of the recent slide in prices has been confined to the near-term futures, the economic advantage associated with entering into contracts with terms longer than one year has been eroded. This is evidenced by the narrow $0.176 spread between a 12 month contract and a 36 month contract. Back on December 9, 2005, the spread in price between these same contract terms was a whopping $1.989.
Changes in natural gas futures prices often mirror electricity contract pricing. Please contact your Good Energy representative today to get specific recommendations regarding your energy accounts.
Because most of the recent slide in prices has been confined to the near-term futures, the economic advantage associated with entering into contracts with terms longer than one year has been eroded. This is evidenced by the narrow $0.176 spread between a 12 month contract and a 36 month contract. Back on December 9, 2005, the spread in price between these same contract terms was a whopping $1.989.
Changes in natural gas futures prices often mirror electricity contract pricing. Please contact your Good Energy representative today to get specific recommendations regarding your energy accounts.
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