Quote:
Originally Posted by CaptainYooh
Except it's not. Current rate is $2.78. Last month was $3.28. It has been going down for two months now. Unlike electricity buying contracts, with natural gas fixed prices, they always lock you up at a higher rate than the current market price and then you lock and start hoping that the pries go up now. They may go up or down, but if they don't, then for a while, you are paying more than the flexible rate. Natural gas is nearly impossible to store feasibly, so prices are always affected by consumption (low temperatures) and production levels (amount of extracted gas that needs to be distributed). If there's too much gas produced in expectation of cold winter, the prices will go down. And any combination of these two factors thereof.
https://economicdashboard.alberta.ca/naturalgasprice |
AECO daily spot was the price I posted when I posted - obviously its different now. I realize monthly index will be different.
Maybe "easy win" was over doing it, but I'm still pleased with that lock-in, especially given there is no cancel penalty. So if prices head down dramatically I can always switch back.
I think high NYMEX prices will pull AECO up this winter as well.