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Historically low natural gas prices mark opportunity for fixed-rate advantages

Summitt Energy offers consumers options to lock-in low

MISSISSAUGA, ON, Jan. 27, 2012 /CNW/ – This heating season we are seeing natural gas prices at 10-year lows. Due to a combination of several factors; including over production and warm weather this winter season, a decline in natural gas demand has left it cheap and readily available. With less demand and high availability, the cost of natural gas has decreased. It is during these periods where a fixed-rate price plan becomes advantageous, before corrective action is taken to start driving prices back up. The decrease in prices has resulted in drilling companies announcing cut-backs in production; at least until natural gas pricing rebounds, to allow for higher output to be more cost-effective. These actions typically contribute to the increase in natural gas prices. As natural gas drilling is reduced, the less available it will become – putting pressure on pricing once again.

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