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.