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October 2017

Six Key Factors Driving Gas & Electricity Prices

Rising exports to Mexico and worldwide could combine with a harsh winter to boost natural gas costs

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  3. Six Key Factors Driving Gas & Electricity Prices

Six Key Factors Driving Gas & Electricity Prices

Natural gas (and by extension, electricity) prices are driven by the balance between supply and demand. If demand exceeds supply, prices increase. Surplus supply drives prices down. As we enter the fourth quarter of 2017, there are six key factors that will drive supply/demand and determine both gas and electricity prices for the balance of the year and perhaps beyond.
 
Demand Factors
 
1. Weather & cooling demand
 
Weather typically has the most significant impact on short-term natural gas prices. Heating demand in the winter and cooling demand in the summer always ...

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