Natural Gas

Natural Gas has spiked up over the last few days and it has caused electricity rates to see a higher level then this same time last year. Businesses are out shopping for energy and to see electricity rates this high is concerning when company owners and managers are trying to add money to the bottom line.

Take a look at where natural gas has been over the last 12 months

As natural gas has taken a dramatic peak upwards commercial businesses are wondering just how far up could it go. The market is very speculative and volatile. Part of the reason for the upturn has to do with energy traders driving the price up by covering their shorts while others go long. This type of trading can cause the futures to continue up with little fundamental explanation as to why.

Take a look at the April 2007 month compared to May 2007 of Natural Gas

April 2007 already had high enough electricity rates and May 2007 has shown rates go even higher as the electricity market closely followed what natural gas has done. Natural Gas could easily go higher we will just have to wait and see what happens next. In the meantime if you are looking for an alternative electricity product I would like to recommend MCPE (Market Clearing Price for Energy) This price does not react to the natural gas spikes like fixed rates do. We would be happy to teach you more about how to implement the best energy procurement strategy for your business using this energy settlement product.