Electric markets once again saw a week-over-week rise in pricing as the underlying cost of gas remains volatile. ERCOT was the lone holdout as dips in summer pricing brought the overall forward average down.
Day-ahead pricing remained volatile this week in response to fluctuations in the natural gas market despite above-normal temperatures during the, on average, coldest time of the year.
Natural Gas Markets
Despite the daily rise and fall observed over the past week, the natural gas market mirrors similar futures to last week’s report.Futures as of 1/13/2021 versus previous week:
Natural Gas Inventory
The EIA reported a net withdrawal of 134 Bcf from the previous week. Working gas in storage was 3,1696 Bcf as of Friday, January 8, 2021.
The Baker Hughes exploration gas count rose by 1 from the previous week for a total of 85 rigs. This is 35 fewer rigs than the 120 in operation at this time one year ago.
The NOAA 6-10 day weather forecast predicts cooler than normal weather for much of the contiguous US with a small band of above normal temperatures expected over the Gulf.