All electric in the near-term markets fell in response to the tumbling underlying cost of natural gas. Winter peaks in ISO-NE dropped as strong storage numbers and prolonged reopening procedures drive down demand concerns.
Volatility was noted in the daily markets in response to prolonged above-normal temperatures.
Natural Gas Markets
Forward pricing for the remainder of 2020 tumbled over the past week as storage numbers remain strong and strain on the summer system remains minimal.Futures as of 6/24/2020 versus previous week:
Natural Gas Inventory
As of Friday, June 19, 2020 working gas in storage was 3,012 Bcf. According to EIA estimates this represents a net increase of 120 Bcf from the previous week. This was well-above the 5-year average of 73 Bcf and current projections place storage above 4,000 Bcf by November.
The Baker Hughes exploration gas count remained the same over the report week for a total of 75. This is 98 fewer rigs than the 173 in operation at this time one year ago.
The 6-10 day NOAA outlook is calling for warmer than normal temperatures throughout most of the US with cooler than normal temperatures expected throughout the Pacific Northwest and parts of the Gulf of Mexico.