Forward electric pricing continues its decline across all ISOs as the underlying cost of gas dropped substantially over the last two report weeks.
Volatility was observed in the daily markets as temperatures dropped well below normal over the previous week.
Natural Gas Markets
December 2021 closed at $5.447. Forwards all through 2022 dropped substantially week over week as temperatures remained unseasonably warm and resulted in low demand.Futures as of 12/1/2021 versus previous week:
Natural Gas Inventory
As of Friday, November 26, 2021 working gas in storage was 3,564 Bcf. According to EIA estimates this represents a net decrease of 59 Bcf from the previous week.
The Baker Hughes exploration gas count remained the same from the previous week for a total of 102 rigs. This is 27 more rigs than the 75 in operation at this time one year ago.
Warmer than normal temperatures are expected across much of the contiguous US with a small strip of near or below normal temperatures expected over the West Coast.