Energy Market Update

Electricity Markets

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:
Feb-21 $2.681 -$0.035
Mar-21 $2.643 -$0.041
Apr-21 $2.650 -$0.040
May-21 $2.677 -$0.034
Jun-21 $2.744 -$0.020
Jul-21 $2.820 -$0.010
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.


Weather Update

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.

National Weather Service Updates (NOAA)

Hurricane Watch: No Hurricanes Click here to view the National Hurricane Center site. Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.

Energy News

Commodities 2021: PJM capacity auction, market rule updates, carbon pricing on tap New York — PJM Interconnection market participants and stakeholders in 2021 are looking forward to the first capacity market auction since 2018, while energy market price formation and more work on pricing carbon dioxide emissions will also be priorities as the fuel mix shifts more toward renewables. If you would like to receive the Energy Market Update to your inbox weekly, please click here to submit your name and email address. 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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