Energy Market Update

Electricity Markets

After weeks of downward movement, the electric ISO’s experienced some upward pressure over the report week.

Likewise, the arrival of more seasonable weather also created some upward movement for the day-ahead market.

Natural Gas Markets

Both the NYMEX and Algonquin Basis natural gas prices rose as July marched on. With a high probability of above-normal temperatures predicted for the Northeast and Midwest in the coming weeks, upward pressure on prices will likely continue to persist as a result of increased demand for cooling.

Six-Month Natural Gas Futures

Futures as of 7/10/2019 versus previous week:

Aug-19

$2.453

+$0.035

Sep-19

$2.434

+$0.045

Oct-19

$2.464

+$0.049

Nov-19

$2.557

+$0.054

Dec-19

$2.730

+$0.046

Jan-20

$2.833

+$0.049

Natural Gas Inventory

Working gas in storage was 2,471 Bcf as of Friday, July 5, 2019. According to EIA estimates a net increase of 81 Bcf was reported from the previous week. The average rate of net injections into storage is 37% higher than the five-year average so far in the refill season!

 

 

The Baker Hughes exploration gas rig count decreased 2 rigs from last week for a total of 172 rigs. This is 17 less rigs than were in operation at this time one year ago when there were 189 rigs.

Weather Update

Above normal temperatures appear to persist for much of the CONUS through the middle to end of July. The Northeast and Midwest especially should expect to see some summer heat.

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

FERC rejects PJM tariff proposal to require year-round demand response resources

The Federal Energy Regulatory Commission (FERC) on Friday rejected tariff revisions proposed by PJM Interconnection to require demand resources be available year-round.

 

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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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