Energy Market Update 2/7/2022

Electricity Markets

All electric markets have seen a steady increase in pricing over the last few weeks. The cost of natural gas remains high as winter weather is lingering, pushing the price of electricity up.

Continued winter weather has brought on higher prices as demand is increasing.

Natural Gas Markets

February NYMEX closed at $6.265, which is the highest close we’ve had since 2008. The remainder of 2022 remains elevated.

Futures as of 2/2/2022 versus previous week:

Mar-22 $5.501 $1.224
Apr-22 $5.044 $1.008
May-22 $5.038 $1.027
Jun-22 $5.069 $1.025
Jul-22 $5.112 $1.022
Aug-22 $5.115 $0.971
Natural Gas Inventory

Working gas in storage was 2,323 Bcf as of Friday, January 28, 2022. According to EIA estimates this represents a net decrease of 268 Bcf from the previous week.

 

The Baker Hughes exploration gas count came in at 116 this week, which was up one from last week. There are 28 more rigs in service compared to this time last year.

 

Weather Update

The country will see a mix of weather patterns. Pockets of warmer weather can be seen in the west and northern plains whereas colder weather will be experienced in the central US and most of the east 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

Manufacturers’ group asks CFTC to probe Jan. 27 Henry Hub futures price spike An industrial trade group has urged the US Commodity Futures Trading Commission to investigate the expiring natural gas futures contracts for Jan. 27, pointing to a 46% one-day price increase and warning of costs to consumers and manufacturers. 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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