Forward Markets across all regions trended upward to levels not seen in almost 2 months. The market has rebounded slightly as cool weather is forecasted over the short term, but natural gas storage remains strong which should help the underlying cost of gas.
Another brief cold snap moved through the Northeast and brought volatility to spot pricing.
Natural Gas Markets
All forward markets remain stable week-over-week. Global demand for LNG is putting upward pressure on forward markets, and now remains an optimal time to lock in forward contracts across all terms.
Futures as of 3/2/2023 versus previous week:
Natural Gas Inventory
Working gas in storage was 2,114 BCF as of Friday, February 24th, according to EIA estimates. This represents a net decrease of 81 Bcf from the previous week.
The Baker Hughes exploration gas increased by 3 rigs for a total of 154 this week. There are 127 additional rigs in operation than at this time one year ago.
Temperatures across the majority of the country will be below average.
Hurricane Watch: Click here to view the National Hurricane Center site.
News : Interstate natural gas pipeline additions in 2022 least since 1995: EIA- New data from the Energy Information Administration shows that 2022 saw the lowest amount of pipeline capacity entering service since 1995, theearliest year for which data is available, highlighting the difficulty in building major gas pipelines often referenced by industry groups.
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.