Fast Facts Highlights Natural Gas Price Drivers

Retail sales for July showed a -.1% contraction versus a +.8% expansion.  Weekly initial jobless claims were higher than expected and consumer sentiment regarding the economy fell to its lowest level since March.  These factors are not indicative of an economy that is on the verge of rebounding.

“A rebound in the economy means an increase in consumer spending.  This spending in-turn causes an increase in the demand for numerous commodities,” says Valerie Wood, President of Energy Solutions, Inc.  “Therefore, when optimism is high about an economic recovery, more money flows into commodities as a profit-making opportunity, and this pushes energy commodity prices higher.  However, if there is no follow-through with an increase in demand, this optimism eventually wanes and money leaves commodities in search of other opportunities and this causes commodity prices to fall.”

This is just one item that is briefly discussed in Fast Facts, a quick two-page publication that highlights numerous price drivers that may impact natural gas prices.  The economy and the perception of an economic rebound is just one of those many factors.  “Fast Facts also covers, supply/demand issues, weather, storage, speculative trading, price trends, and crude oil price impacts.  Basically, it allows readers to quickly put their hands around what is happening in the marketplace in order to make more informed buying decisions,” says Wood.

Request your free copy of Fast Facts by sending your request to request@energysolutionsinc.com or call (608) 848-9589.

 
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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.