HOUSTON, Texas, July 23, 2014 (GLOBE NEWSWIRE) -- via PRWEB - EMEX, LLC, a leading technology firm that is revolutionizing how energy is being bought and sold through its live Exchange, recently revised its estimates for natural gas price averages for the remainder of Calendar Year 2014 due to shifting market conditions driven by a cool summer in the Northeast and record levels of natural gas being injected into storage. While the current market's price decrease has lowered costs over the past 2 months, EMEX maintains a bullish outlook on both the electricity and natural gas markets compared to 2012 and 2013 prices.
EMEX's analysis - based on current market fundamentals including current storage levels, historical injection patterns and rig counts - finds that natural gas prices are still likely to stabilize in the same price range as it was in 2010 and 2011 time frame. The record cold this past winter is providing biased support to the upside for a Calendar Year 2014 average in the $4.10-$4.40 range, but the balance of 2014 and Calendar Year '15 are trading significantly lower, in the $3.75 - $4.10 range.
"One of the benefits of deregulated energy markets is the opportunity for customers to take advantage of a favorable change in market conditions," explained EMEX CEO Todd Segmond. "With recent trends in the energy markets, our clients across the country, including those in Public Service Electric & Gas (PSEG), Jersey Central Power and Light (JCPL), Pennsylvania Electric Company (PECO), Commonwealth Edison (ComED), and all across Texas, have the ability to capture the current dip in the market to effectively mitigate future energy price risk for both electricity and natural gas costs."
Prior to the cool summer, natural gas prices shot up this winter due to the Polar Vortex, which put major population centers in a deep freeze for extended periods of time. As a result, more natural gas was used this winter than at any time in the past 20 years.
"The extreme cold put us at a substantial storage deficit at the end of the winter," said Phillip T. Golden, Director of Risk and Product Management at EMEX. "However, mild temperatures and record production levels have allowed us to refill storage at a break-neck pace and current forecasts suggest that natural gas in storage at the end of the injection season will approach 3,400 BCF. The market is reacting to these strong bearish signals with tumbling natural gas futures prices. Since the end of June, the balance of Calendar Year 2014 was fallen by roughly $0.50/MMBtu and strip for Calendar Year 2015 is off $0.30/MMBtu."
While the current market conditions present favorable buying opportunities for energy consumers, the uncertainty of future weather patterns, including the potential for hurricane activity along the Texas-Alabama shore line and an unknown winter forecasts, leave the future of the market uncertain.
About EMEX, LLC
EMEX, LLC is a leading technology firm that is revolutionizing how energy is bought and sold through its live Reverse Auction Exchange. The Exchange creates a real-time trading environment that compels sellers to compete, resulting in prices dropping precipitously for businesses procuring energy. EMEX continues to develop new platforms that specialize in Exchanges for all industry types in order to provide a real-time buying and selling environment for all commodities, products, and services. For more information, please visit: http://www.EnergyMarketExchange.com
This press release contains forward-looking statements which involve risk and uncertainties. From time to time, in written and oral statements, we discuss our expectations regarding future events and our plans and objectives for future operations. These forward-looking statements generally are accompanied by words such as "anticipate," "believe," "could," "estimate," expect," "forecast," "intent," "may," "possible," potential," "predict," "project" or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to vary from our expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters and other Force Majeure events; changes in the legal and regulatory environment; our restructuring activities; currency fluctuations; changes in customer demand; and the other risks and contingencies detailed within this press release. We undertake no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
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