Downward price movements on natural gas should be reflected in the price of electricity. What does this new supply mean for heat rate based pricing? In the past the winter heating season was not the best time to buy heat rate products but that might change now.
TPH slashes US gas price forecasts at least 25% for next three years
Washington (Platts)
Growing US natural gas supplies that threaten to overfill storage this fall led analysts at energy investment bank Tudor Pickering Holt on Thursday to slash its gas price forecasts by 25% or more for the next three years.
TPH analysts cut their average price forecast 25% for this year to $3.25/Mcf but stuck by their long-term forecast the eventually prices will average $6/Mcf.
The banks biggest cut comes next year where they see gas prices averaging $4/Mcf, a 33% drop from the $6/Mcf they predicted in August. …