Shoulder Season

For most people springtime means flowers, cleaning and putting away winter coats. For people in the energy business, warming weather means they can stop managing for the heating season and brace for the really big stage in the US power sector: cooling season.

With natural gas prices failing to settle lower despite the beginning of what are called the shoulder months in the energy business, when demand for temperature control and other power-sucking activity slips, many are entering the spring months with a renewed sense of uncertainty about their commitment to the fuel. Even a bearish storage report couldn’t weigh down natural gas prices earlier this week, and although prices are nowhere near historical highs the sector has become so accustomed to cheap gas every penny higher makes for a pause given the US large scale “dash to gas” in recent years. Keep reading →