Forward markets remained stable over the last week. Cold temperatures were counteracted by modest withdrawal from natural gas storage.
Cold weather has returned, and markets have responded, driving spot pricing up dramatically over the last week.
Natural Gas Markets
Outward years are still consolidated and stable, but coming winter still remains volatile and 2023 future rates have been driven up in the past week in response to the cold weather.
Futures as of 12/15/2022 versus previous week:
Natural Gas Inventory
Working gas in storage was 3,412 BCF as of Friday, December 9th. According to EIA estimates this represents a net decrease of 50 Bcf from the previous week.
The Baker Hughes exploration gas count increased by 1 rig for a total of 154 this week. There are 105 additional rigs in operation than at this time one year ago.
Temperatures will be above average across the West Coast, and below average across the East Coast and Midwest.
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 POWER TRACKER: ISO-NE forward price outlook lower, prices higher on year- ISO New England wholesale power prices in November rose about 16% on month and 9%-12% on year, and while forward power prices moderated a bit on softer natural gas prices, power forwards remained above $300/MWh in some cases.
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.