Re: Fuel Contract Prices

Posted by ErnieDD on January 06, 2006 at 17:44:58 from (66.67.13.184):

In Reply to: Fuel Contract Prices posted by WyoDave on January 06, 2006 at 17:11:45:

I would be a little cautious about locking in fuel. Watch your outdoor thermometer, if we continue to have a mild winter, fuel prices will unwind fast. The last week of Dec, natural gas went into storage! They were looking for a 33-37 bcf draw and ended up with a 1 bcf injection. Could easily end up with 1.5 tcf in storage next spring. The balance is swinging to less money to burn gas than oil per therm.

My decision to run variable on gas is feeling better now than 4 weeks ago.

BTW, we have never injected gas into storage this late in the season.

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