Energy Market Update 10-18-2021

Electricity Markets

Forward electric dropped off slightly week over week from previous highs. Warm weather and favorable injections are likely behind the decrease.

There was minimal volatility in the daily markets as temperatures held steady above seasonal norms but pricing remained elevated due to the underlying cost of natural gas.

Natural Gas Markets

Forward gas once again rose week over week. Some alleviation was observed in the traded cost of the Algonquin basis heading into New England.

 

Futures as of 10/13/2021 versus previous week:

Nov-21 $5.882 +$0.280
Dec-21 $6.038 +$0.297
Jan-22 $6.129 +$0.294
Feb-22 $6.013 +$0.242
Mar-22 $5.673 +$0.281
Apr-22 $4.251 +$0.271
Natural Gas Inventory

As of Friday, October 8, 2021 working gas in storage was 3,369 Bcf. According to EIA estimates this represents a net increase of 81 Bcf from the previous week.

The Baker Hughes exploration gas count dropped by one from the previous week for a total of 98 rigs. This is 24 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 Central US and Gulf Coast with normal to below normal temperatures expected on the West Coast and Northeast.

National Weather Service Updates (NOAA)

Hurricane Watch: Click here to view the National Hurricane Center site.

Equatorial Pacific Outlook:

Click here to view La Nina and El Nino status.

Energy News

Henry Hub could reach $12-$14 this winter as capital discipline limits supply growth: Platts Analytics Capital discipline from US gas producers is expected to continue to blunt support from high prices on production levels, which could lead to dramatically higher US gas prices this winter, according to S&P Global Platts Analytics leaders in an Oct. 14 call with reporters. 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

About the author

Leave a Reply