Long-term deals are more cost effective than short-term ones. Risk can be mitigated with a diversified buying strategy. Many facilities are avoiding supplier premiums by relying on index-heavy strategies.
Bearish fundamentals have dominated winter thus far, dropping national prices to summer levels. Still, CA prices remain elevated, and changing weather patterns could provide support as heating begins to ramp up.
Recent natural gas price rallies may slow or possibly weaken for a brief period. Be ready to execute a short-term winter hedge quickly. Plan to reevaluate risk tolerance and procurement strategy in spring 2022.