Sure, the recession is awful with the layoffs and all, but just think of all the money you’re going to save on your energy bills!
Crude prices are falling due to huge inventories. Gasoline prices will continue to increase as the summer driving season approaches but should still remain well below levels seen in recent years, when prices broke first the $3, and then the $4 a gallon barriers.
And natural gas prices are “racing to a bottom” notes Barclays Capital analysts due to huge inventories that persist after years of big production gains in the United States:
The sudden and swift deterioration in the US economy has left a deep scar in natural gas consumption, and with little signs of improvement, the market is staring into a demand abyss that has contributed to brimming inventories and threatens to bloat them further.
Analysts are expecting “soft” natural gas prices throughout 2009 with a possible recovery later in 2010. That in large part explains the lower electric rates we’re seeing in Texas. Prices for at least one month-to-month contract in the Houston area has dipped below 10 cents per kwh, according to the Power To Choose site, and that hasn’t happened in a looooong time.
The big question: will rates keep getting lower?
Electric rates in Texas continue to follow natural gas prices down (Data from ChooseEnergy.com).