Energy Market Update 12-6-2021

Electricity Markets

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: 
Jan-22 $4.255 -$0.717
Feb-22 $4.196 -$0.681
Mar-22 $4.040 -$0.596
Apr-22 $3.820 -$0.179
May-22 $3.796 -$0.138
Jun-22 $3.834 -$0.128
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.


Weather Update

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.

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

NYMEX Henry Hub drops to 12-week low as early winter heating demand fails to appear The NYMEX Henry Hub prompt-month contract tumbled past a key technical support level in Nov. 30 trading, as rising production and a mild start to the heating season ease the market’s fears over supply heading into winter. 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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