Energy Market Update

Electricity Market

Prices in the eastern markets slowly continue to move higher while ERCOT prices have stabilized a bit.

The day-ahead market saw some relief over the report week with cold weather starting to subside.


Natural Gas Markets

The May ‘18 NYMEX future contract expired on Thursday April 26th at $2.821. The market ticked higher after the EIA reported a surprisingly large withdrawal from storage. Milder temperatures seem to finally be arriving along the east coast after a very cold March and April.  This should allow for heating-demand levels to fall a bit.

Six-Month Natural Gas Futures

Futures as of 4/25/18 versus previous week:

May  $2.786    +0.047

Jun. $2.807     +0.039

Jul.   $2.844    +0.030

Aug. $2.852    +0.024

Sep. $ 2.835   +0.021

Oct.  $2.846   +0.018

Natural Gas Inventory

A net decrease of 18 Bcf from the previous week was reported by the EIA. Working gas in storage was 1,281 Bcf as of Friday, April 20, 2018. Estimates for the report called for a smaller draw from storage, ranging from –4 to –11. Current stocks are around 41.2% lower than levels at this time a year ago, and 29.1% below the five-year average for this time of year. Once again, this should hopefully be the last draw of the season.

NG Rig Count

The Baker Hughes exploration gas rig count increased 3 rigs from the previous week for a total of 195 rigs. The report total is 24 rigs more than in operation last year when there were 171 rigs.

Weather Update

The NOAA weather models are expecting some lingering cold temperatures spreading across the northern United States. Conversely, the Western half of the CONUS is calling for above normal weather.

National Weather Service Updates (NOAA)

Hurricane Watch- No Activity: Click here to view the National Hurricane Center site.

Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.

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Disclaimer: This information is provided for the use of our customers and potential customers. Power Management Company assumes no responsibility or liability for the accuracy or completeness of pricing or information in this document. Historical data was obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. It is not intended to provide advice or recommendation. Views are subject to change without notice.

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