Forward markets across all regions trended down slightly this week, but overall remain stable. Strong natural gas storage and continued mild weather conditions are main contributing factors.
Spot rates continue to remain low and stable. Sustained warmth, which has not stressed gas loads, have allowed for lengthy periods of quiet spot pricing.
Natural Gas Markets
2023 pricing is now trending nearer 2020 settled rates. The 2023 winter decline has been driven by stable weather. 2024 and 2025 future pricing remains optimal making now a good time to price out further into the future.
Futures as of 2/23/2023 versus previous week:
Natural Gas Inventory
Working gas in storage was 2,195 BCF as of Friday, February 17th, according to EIA estimates. This represents a net decrease of 71 Bcf from the previous week.
The Baker Hughes exploration gas remained unchanged for a total of 151 this week. There are 124 additional rigs in operation than at this time one year ago.
Temperatures will be above average across the Southeast, and below average across the Midwest and West coast.
Hurricane Watch: Click here to view the National Hurricane Center site.
Natural-Gas Prices Plunge, and Drillers Dial back- Natural-gas prices have dropped more than 65% since mid-December and this week hit their lowest level since 2020’s pandemic lockdown, leading producers to throttle back drilling in adramatic turn in the market for the heating and power-generation fuel
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