Energy Market Update

Electricity Markets

ISO-NE electric prices continue to slide, reaching lows last seen in late winter of 2017. PJM also trailed off over the report week, while NYISO and ERCOT were slightly up and down.

Day-ahead electric prices trended slightly upward over the report week on the heels of some above average temperatures.

Natural Gas Markets

Natural gas prices moved up slightly over the report week. Prices may begin to see some upward pressure as weather forecasts for the upcoming two weeks are predicting above-average temperatures reaching the major U.S. demand centers for natural gas, the Northeast and Texas. The hotter weather front has analysts estimating demand will increase due to increasing power burns. Thus far, a mild start to summer, strong production and the healthy storage outlook have kept prices at bay.

Six-Month Natural Gas Futures

Futures as of 7/3/2019 versus previous week:

Aug-19 $2.418 +$0.097
Sep-19 $2.389 +$0.093
Oct-19 $2.415 +$0.091
Nov-19 $2.503 +$0.095
Dec-19 $2.684 +$0.086
Jan-20 $2.784 +$0.072
Natural Gas Inventory

As of Friday, June 28, 2019, working gas in storage was 2,390 Bcf. This represents a net increase of 89 Bcf from the previous week, slightly higher than expectations. Storage levels are now only 152 Bcf away from the five-year average benchmark, levels which, earlier in the year, were not expected to be reached.

 

 

The Baker Hughes exploration gas rig count increased 1 rig from last week for a total of 174 rigs. This is 13 less rigs than were in operation at this time one year ago when there were 187 rigs.

Weather Update

Across the CONUS, temperatures are expected to rise above normal through mid-July.  The 16-20 day outlook currently appears to be much the same, so the warmth for major demand centers especially could be here to stay through the end of the month.

National Weather Service Updates (NOAA)

Hurricane Watch- No Hurricane Activity

Click here to view the National Hurricane Center site.

Equatorial Pacific Outlook:

Click here to view La Nina and El Nino status.

Energy News

Power supply and market debate continues as Mass. OKs Canadian hydro contracts

New York — 20-year PPAs for 9.45 TWh of hydropower HQ’s ability to deliver, market impacts questioned  

 

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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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