Electricity Markets
Markets continued their downward trend from last week in anticipation of continued warmth across the East Coast.
An extreme cold snap in the Northeast led to all time high spikes in spot pricing over Christmas. Prices have now returned to normal as warmer weather has returned.
Natural Gas Markets
All forward pricing years have now consolidated across all terms, with 2023 pricing now falling below the 2025 line. Winter pricing is less volatile now in response to sustained warmer temperatures.
Futures as of 12/29/2022 versus previous week:
| Current | ||
| Jan-23 | $4.709 | -$0.518 |
| Feb-23 | $4.520 | -$0.625 |
| Mar-23 | $4.083 | -$0.624 |
| Apr-23 | $3.896 | -$0.558 |
| May-23 | $3.903 | -$0.542 |
| Jun-23 | $4.031 | -$0.550 |
Natural Gas Inventory
Working gas in storage was 3,112 BCF as of Friday, December 23rd. According to EIA estimates this represents a net decrease of 213 Bcf from the previous week.
The Baker Hughes exploration gas count increased by 1 rig for a total of 156 this week. There are 106 additional rigs in operation than at this time one year ago.
Weather Update
Temperatures will be above average across the entire United States.
Hurricane Watch: Click here to view the National Hurricane Center site.
News : EU gas price cap expected to trigger changes in market behavior: EFET- European energy trader group EFET has warned that the newly agreed EU gas market correction mechanism is likely to lead to changes in marketbehavior and reduce industry confidence in the longer term.
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.