Last Labor day, I did something I thougth I would never do — buy natural gas on a fixed rate. After reading an article in the Wall Street Journal noting the futures prices of natural gas at better than $1.80 per therm for the winter — I bought at $1.09.
In retrospect, the decision was a good one. Now, my contract does not expire til September — however, I received an offer from my gas distributor to give me a rate of $1.11 if I buy now (and they only gave me a few days). Course, seeing this a pure pressure tactic – I refused the author. But, the final straw came when I realized I would be giving up my contracted price of $1.09 immediately – losing two months’ price advantage.
Today, in USA, futures prices for natural gas are noted as hitting the lowest they have been since September 2004 –seems supply is up, demand down. Ok, where is the market force bringing consumer price back to 2004 prices?
Matter of fact — why are my proposed rates going up if the supply cost is going down? I smell something and it ain’t gas!