As Bomb Cyclone Blew, Energy Prices Spiked, Then Returned To Earth

This month’s cold temperatures have affected both energy consumers and producers.

By Alexandra HartJanuary 8, 2018 10:14 am| ,

Frigid temperatures over the past few weeks, including this weekend’s ominously named Bomb Cyclone, have had much of the country cranking up the heat. And the need for heat has had an impact on the energy industry.

Matt Smith, director of commodity research at ClipperData says that on New Year’s Day, temperatures didn’t go above 32 F, in 90 percent of the country.

“That was fairly balmy compared to what happened with the Bomb Cyclone,” Smith says.

The price for U.S. benchmark natural gas initially increased 10 to 15 percent as a result of significantly higher demand in the areas affected by the weekend storm, Smith says, But good supply, along with an improving outlook for the weather, brought prices back down quickly.

What you’ll hear in this segment:

– Why the northeast is affected by constraints on natural gas supply

– How cold weather affected energy production in Texas

– What we can expect for energy prices during the rest of January

Written by Shelly Brisbin.