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:
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.
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.