December 2025 In Summary – Why Buy Now?

In Summary – Why Buy Now?

There is a high probability of electricity and natural gas prices continuing to increase in the coming year, as forecasted demand is likely to outstrip supply. With producers showing greater discipline and limiting production growth despite strong price signals, supply may struggle to keep pace. This presents a favorable opportunity for businesses to mitigate risk by securing all or a portion of their energy supply costs now.

Substantial Increase in Electricity Demand Forecasted

The expansion of data centers are leading to a significant increase in electricity demand, which will put a strain on power grids and resources. This heightened demand is likely to result in higher electricity prices. Consequently, businesses will face increased operational costs due to these rising electricity prices.

Natural Gas Exports Are Soaring

U.S. natural gas exports are poised for significant growth, with over 12 billion cubic feet per day of new capacity underway, nearly doubling the current levels by 2027. As global demand for natural gas rises, the U.S. is likely to become the preferred supplier. Potentially leading to higher domestic prices if supply doesn’t keep pace with the growing demand.

In Summary – Why Buy Now?

There is a high probability of electricity and natural gas prices continuing to increase in the coming year, as forecasted demand is likely to outstrip supply. With producers showing greater discipline and limiting production growth despite strong price signals, supply may struggle to keep pace. This presents a favorable opportunity for businesses to mitigate risk by securing all or a portion of their energy supply costs now.