Electricity Markets
Volatility in the market continues. Electric markets returned to a more optimal position this week, aided by good storage and warmer weather.
Markets have stabilized in response to warm temperatures. Energy Prices continue to stay low.
Natural Gas Markets
Outward years have flattened and consolidated, beginning to see convergence. Winter rates look more ideal in comparison to recent months.
Futures as of 12/8/2022 versus previous week:
| Current | ||
| Jan-23 | $5.935 | -$0.995 |
| Feb-23 | $5.788 | -$1.030 |
| Mar-23 | $5.302 | -$0.876 |
| Apr-23 | $4.765 | -$0.482 |
| May-23 | $4.732 | -$0.449 |
| Jun-23 | $4.816 | -$0.440 |
Natural Gas Inventory
Working gas in storage was 3,462 BCF as of Friday, December 2nd. According to EIA estimates this represents a net decrease of 21 Bcf from the previous week.
The Baker Hughes exploration gas count remained unchanged for a total of 155 this week. There are 102 additional rigs in operation than at this time one year ago.
Weather Update
Temperatures will be below average across the west, but near normal across the Midwest and the east coast.
Hurricane Watch: Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.
News : US EIA expects higher on-peak wholesale power prices across US this winter- Every US region is likely to see higher peak wholesale electricity prices this winter, the US Energy Information Administration said Dec. 6,highlighting expectations that prices in the Mid-Atlantic and Central regions could surpass winter 2021-22 levels by more than 60%.
Analysis : Fading US demand outlook leads NYMEX January gas to nine-month low- The NYMEX Henry Hub January futures contract fell below $6/MMBtu on Dec. 5, to trade at its lowest since March as the market takes stock of another restart delay at the Freeport LNG terminal and shifting weather forecasts pointing to a milder start to December than previously anticipated.
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