Electricity Markets
Markets dropped slightly over the last week, the first decrease seen week over week in a few weeks. Despite announcements of further gas production cuts, markets dropped in response to continued mild weather and decreased gas demand.
Continued warmth kept spot pricing calm. All regions are seeing similar rates, with markets seeing the lowest spot pricing in nearly 12 months.
Natural Gas Markets
Near term pricing for 2024 continues to drop. Outer months are flat entering the the 2024-2025 injection season. 2024 pricing curve could shift upwards if there are further gas production cuts
Futures as of 3/14/2024 versus previous week:
| Current | ||
| Apr-24 | $1.652 | -$0.270 |
| May-24 | $1.773 | -$0.289 |
| Jun-24 | $2.043 | -$0.245 |
| Jul-24 | $2.376 | -$0.144 |
| Aug-24 | $2.468 | -$0.122 |
| Sep-24 | $2.470 | -$0.108 |
Natural Gas Inventory
Working gas in storage was 2,325 BCF as of Friday, March 8th , according to EIA estimates. This represents a net decrease of 9 Bcf from the previous week.
The Baker Hughes exploration increased by 1 rig, for a total of 116 this week.
Weather Update
Temperatures will be above average across the East Coast and Southern Plains, and below average across the Upper Midwest and West Coast
Hurricane Watch: Click here to view the National Hurricane Center site.
News : US gas producers embrace well deferrals to manage 2024 supply– A number of US gas producers are electing to drill but hold back a portion of their new wells this year as they work to simultaneously ease current oversupply conditions while setting themselves up for an expected rebound in prices in 2025.
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