The summer forecast is in and it’s showing hot temperatures all season long. While warmer weather seems like the perfect condition for summer vacations and adventures, you may ultimately pay the price. Outlooks show that this summer could potentially be among the top 10 hottest across parts of the U.S. If the forecast plays out as expected, demand for natural gas will increase, further tightening supply. This, combined with other global factors, could push energy prices higher in the summer months. Luckily, there are steps you can take to minimize the effects of potential price spikes. Let’s dive into all of the factors affecting energy prices this summer and how you can prepare. 

The Battle Between Supply and Demand

Increased energy demand in the summer months is common. As temperatures rise in the summer and dip in the winter, people use more energy to heat or cool their homes or offices. However, current global events are affecting the natural gas supply, putting consumers at greater risk of paying more. One of these factors is the energy crisis in Europe. As the EU looks to cut reliance on Russian energy, other global suppliers, including the U.S., are stepping in to help alleviate the pressure. Despite expected growth in production from 95 billion cubic feet per day to 98 billion cubic feet per day by the end of the year, the strong domestic and global demand for natural gas is keeping prices high for the time being. If production continues to grow at the expected rates, we could begin to see prices fall in the coming year. 

What Does This Mean for Summer Travel?

If you are planning a road trip this summer, it may be best to wait until the end of the season. Gasoline prices are expected to be higher this summer than last, with an average price of $3.84 per gallon. As the effects of the COVID-19 pandemic lessen and geopolitical tensions rise, oil consumption is expected to increase, thus causing higher prices. The good news is that prices will likely gradually fall over the course of the summer. In March of 2022, gasoline prices averaged $4.22 per gallon across the U.S.. By July 2022, prices are expected to fall to $3.75 per gallon, and then again in September to $3.68 per gallon. For those looking to save on summer travel, it appears late summer should be your target timeframe.  

Saving Energy in Summer

Conserving energy is one of the best ways to protect yourself from the volatility of the market. There are several simple steps you can take to lower your usage, and in turn, lower your energy bill. 

• Check and cover your windows. Cracks and openings around your windows and doors can cause warm air to leak into your home. To prepare for the warmer months, apply caulk or weatherstripping to any leaks you find. In addition, having treatments or coverings over your windows can help prevent heat gain throughout the day. 
• Strategically set your thermostat. Setting your thermostat as close to the outdoor temperature as possible while still remaining comfortable can help lower your cooling expenses. You can also protect your costs by setting the temperature in your home higher when you are away. Finally, keep up with routine maintenance for your air condition system to ensure it is working most efficiently. 

• Flip the switch. Summer months provide more hours of sunshine. Opt for natural daylight when you can rather than turning on artificial lighting. Using energy-efficient lighting options can also help save money in the long term. In addition to keeping the lights off when possible, remember to turn off ceiling fans when you leave a room. While ceiling fans are a great option to stay cool without turning down your thermostat, keeping them on when a room is empty can create larger expenses. 

Look To The Future

Apart from conserving energy, there are additional ways you can lower your expenses for the long term. By using Online Energy Brokers’ instant rate comparison tool, you can lock in a lower energy rate in just a few simple clicks. Simply input information from your energy bill, compare rates and terms, then select and sign the contract on the spot. No long meetings with a broker needed.