Energy Market Update 12-13-2021

Electricity Markets

All ISOs saw a drop in forward electric rates as natural gas and weather conditions remained stable.

Mild temperatures, and a warmup mid next week are leading to little volatility in electric pricing.

Natural Gas Markets

2022 NYMEX continued to see another step down this week.

Futures as of 12/8/2021 versus previous week:
Jan-22 $3.815 -$0.440
Feb-22 $3.774 -$0.422
Mar-22 $3.658 -$0.382
Apr-22 $3.575 -$0.245
May-22 $3.583 -$0.213
Jun-22 $3.628 -$0.206
Natural Gas Inventory

As of Friday, December 3, 2021 working gas in storage was 3,505 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 105 rigs. This is 30 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

ISO New England sees precarious power reliability heading into winter

ISO New England said Dec. 6 that higher global heating oil and LNG prices, along with supply chain challenges and natural gas pipeline constraints, could limit fuel availability in New England if needed for power production this 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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