Market Update 9-19-2022

Electricity Markets

ISO-NE, PJM and NYISO rebounded to near pricing from two weeks ago despite a strong injection in natural gas storage.

Pricing in the daily markets observed a quieter week as temperatures remained moderate over the market week.

Natural Gas Markets

Forward natural gas rates are up from last week due to concerns of natural gas storage at below normal levels heading into an unpredictable winter.

 

Futures as of 9/14/2022 versus previous week:

  Current  
Oct-22 $9.114 $1.272
Nov-22 $9.167 $1.266
Dec-22 $9.31 $1.275
Jan-23 $9.407 $1.292
Feb-23 $9.073 $1.255
Mar-23 $7.85 $1.145

Natural Gas Inventory 

Working gas in storage was 2,771 Bcf as of Friday, September 9, 2022. According to EIA estimates this represents a net increase of 77 Bcf from the previous week.

 

The Baker Hughes exploration gas count decreased by 4 rigs for a total of 162 this week. There are 101 additional rigs in operation than at this time one year ago.

Weather Update

The Eastern half of the Great Plains is predicted to see above normal temperatures, whereas the Western half of the Great Plains will see near normal temperatures.

 

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

Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.  

 

New York power prices tied to gas prices for foreseeable future, could rise this winter The New York Independent System Operator warned of a wholesale electricity cost increase expected this winter due to several economic and geopolitical factors impacting the market cost of natural gas used in power generation, according to a Sept. 13 paper.

US EIA boosts 2022 natural gas price forecasts on low inventories, high demand The US Energy Information Administration Sept. 7 lifted its forecasts for US Henry Hub natural gas spot prices for the third and fourth quarters of2022, citing below-average storage inventories and the continued high global and domestic demand for gas that is expected for the winter season.

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.

About the author

Leave a Reply