Energy Market Update 10-4-2021

Electricity Markets

Forward electric pricing continues to rise across the country. The volatility of the underlying cost of natural gas heading into this upcoming winter has been a leading factor behind the increase.

Pricing dropped off dramatically in the daily markets as unseasonably warm temperatures abated.

Natural Gas Markets

Forward gas saw another steep week-over-week increase heading into this upcoming winter. October 2021 settled at $5.841, the highest for this time of year since 2008. Volatility remains heavily focused on the 2021-2022 winter season.

  Futures as of 9/29/2021 versus previous week:
Nov-21 $5.751 +$0.686
Dec-21 $5.870 +$0.682
Jan-22 $5.950 +$0.688
Feb-22 $5.829 +$0.665
Mar-22 $5.409 +$0.582
Apr-22 $3.990 +$0.164
Natural Gas Inventory

As of Friday, September 24, 2021 working gas in storage was 3,170 Bcf. According to EIA estimates this represents a net increase of 88 Bcf from the previous week.

The Baker Hughes exploration gas count held steady from the previous week for a total of 99 rigs. This is 25 more rigs than the 74 in operation at this time one year ago.


Weather Update

Warmer than normal temperatures are expected across much of the Eastern US and Midwest with cooler than normal temperatures anticipated for the Western third of the US.

National Weather Service Updates (NOAA)

Hurricane Watch: Hurricane Same. Click here to view the National Hurricane Center site. Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.

Energy News

In 2021, natural gas generated a larger share of revenue for selected U.S. oil producers Among 54 publicly traded crude oil producing companies, natural gas revenue accounted for 14% of total revenue in the first-quarter 2021. 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 s

Leave a Reply