Energy Market Update

Electricity Markets

Electric markets dropped week over week as the underlying cost of natural gas saw a decline.

Day-ahead pricing experienced a mid-week drop as temperatures spiked well above normal for this time of year.

Natural Gas Markets

Near-term pricing experienced the biggest fall over the last report week as weather forecasts predict mild weather.

Futures as of 1/20/2021 versus previous week:

Feb-21 $2.494 -$0.187
Mar-21 $2.500 -$0.143
Apr-21 $2.536 -$0.114
May-21 $2.584 -$0.093
Jun-21 $2.646 -$0.098
Jul-21 $2.715 -$0.105
Natural Gas Inventory

The EIA reported a net withdrawal of 187 Bcf from the previous week. Working gas in storage was 3,009 Bcf as of Friday, January 15, 2021.

The Baker Hughes exploration gas count rose by 3 from the previous week for a total of 88 rigs. This is 27 fewer rigs than the 115 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 Midwest and West Coast with warmer than normal temperatures expected for most of the remaining contiguous US.

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

New York State to get 3.3GW in offshore wind capacity Norwegian fossil and wind energy company Equinor has been picked to provide New York State with offshore wind generation capacity of 3.3GW in one of the largest renewable energy procurements in the US to date. 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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