Libbey to boost prices 8%; cost of natural gas blamed A stunning 65 percent increase this year in the price of natural gas, a key fuel used by factories making table glasses and dinner plates, has prompted Toledo's Libbey Inc. to raise its prices by about 8 percent, effective Aug. 18.
The company plans to reduce other costs, but the price increases are needed to offset its energy costs, Chairman John Meier said in a statement. |
Higher natural gas prices force Ontario consumers to gamble on pricingTORONTO - A rush of cold air could wash over Ontario this fall when residents get their first glimpse at natural gas bills that include higher prices which went into effect on Canada Day.
Consumers will face gas bills that are as much as 45 per cent higher than what they're used to paying, depending on where they live, and that could convince many to sign energy contracts to cut their costs. |
Natural Gas Weekly UpdateNatural gas spot prices increased on the week (Wednesday-Wednesday) at most market locations, climbing up to 66 cents per MMBtu, or as much as 5 percent. The price increases over the period likely can be attributed to continued summer heat sustaining cooling demand for natural gas, rising crude oil prices, and ongoing concerns about the sufficiency of natural gas supplies. While price hikes were widespread throughout much of the Lower 48 States, several markets posted declines over the same period, including markets in the Midcontinent and Florida, and selected markets in West Texas, Louisiana, California, and the Rocky Mountains region.
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Prices at the Henry HubPrices at the Henry Hub exceed levels of the past winter, as crude oil prices have climbed to record-high levels. During the 2007-2008 heating season, the Henry Hub price reached its peak level of $9.86 per MMBtu for the heating season on March 31. Following a brief decline in early April 2008, the Henry Hub price has exceeded $9.86 per MMBtu consistently, exhibiting an upward trend since mid-April. At $13.31 per MMBtu, the Henry Hub price is at its highest level since December 21, 2005, when it reached $13.55 per MMBtu. Since March 31, the Henry Hub price has risen by $3.45 per MMBtu, or about 35 percent, while the WTI crude oil price has increased by $42.20 per barrel, or 42 percent, climbing to its new record level of $143.74 per barrel in trading Wednesday, July 2. Crude oil projects, with prices at these levels, compete with natural gas prospects for scarce production resources, including drilling rigs and labor. Additionally, petroleum product prices increase, which lessens price competition in natural gas markets. These effects on both sides of the market put upward pressure on natural gas prices. Historically, spot prices at the Henry Hub have tended to peak during the winter heating season each year, with injection season peaks falling well short of the highest levels of the preceding heating season. If the Henry Hub spot price peaks during this injection season, it will be for the first time since 1999 (excluding October 2005 prices, which were in the immediate aftermath of Hurricanes Katrina and Rita). |
Results of AIM’s Survey on Electricity Costs TroublingBoston, Mass. -- High electricity costs are a major concern for Massachusetts employers, and will drive decisions about whether or not to make new investments, add jobs, or maintain operations in the Commonwealth, a new survey reports. In the statewide survey conducted by Associated Industries of Massachusetts (AIM) during the late summer and early fall, 46% of industrial and commercial businesses responding cited electricity as a key cost factor in their decision making. Massachusetts commercial and industrial electric rates are among the highest in the nation. |
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