All electric markets rose in response to the underlying cost of natural gas. ERCOT saw the largest increase week-over-week as summer peak pricing spiked in response to rising temperatures which brought higher demand to the system.
Daily pricing held steady but remained elevated as temperatures held at or above normal for what is, on average, the start of the warmest period of the year.
Natural Gas Markets
The July contract settled at $1.495, the lowest in the last 25 years. Upward pressure was observed throughout the remainder of 2020 and 2021.Futures as of 7/1/2020 versus previous week:
Natural Gas Inventory
As of Friday, June 26, 2020 working gas in storage was 3,077 Bcf. According to EIA estimates, this represents a net increase of 65 Bcf from the previous week. This was on par with the 5-year average of 65 Bcf.
The Baker Hughes exploration gas count increased by one over the report week for a total of 76. This is 98 fewer rigs than the 174 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 contiguous US with a small band of cooler than normal temperatures expected in the Pacific Northwest.