Weekly market update- 2/27/2023

Electricity Markets

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:

Mar-23 $2.198 -$0.340
Apr-23 $2.328 -$0.286
May-23 $2.468 -$0.299
Jun-23 $2.668 -$0.281
Jul-23 $2.851 -$0.261
Aug-23 $2.894 -$0.262

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.

Weather Update

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


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.

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