Electricity Markets
Electric prices were broadly flat with Texas observing a slight drop. Forward pricing is still very attractive and trading quite near the lows of this past summer. Upward pressure is likely to be seen in the NYISO due to the impending closures of the first generator at Indian Point nuclear power plant in April 2020 as well as the just-announced closure of the coal-fired Kintigh Generating Station in Somerset, NY.
Far below-average temperatures brought expected volatility to the daily markets.
Natural Gas Markets
Six-Month Natural Gas Futures
Futures as of 11/20/2019 versus previous week:| Dec-19 | $2.545 | -$0.055 |
| Jan-20 | $2.591 | -$0.101 |
| Feb-20 | $2.541 | -$0.109 |
| Mar-20 | $2.442 | -$0.094 |
| Apr-20 | $2.281 | -$0.079 |
| May-19 | $2.273 | -$0.072 |
Natural Gas Inventory
As of Friday, November 15, 2019 working gas in storage was 3,638 Bcf. According to EIA estimates this represents a net decrease of 94 Bcf from the previous week. As predicted, the injection season has ended with a large withdrawal in the face of unseasonably cold temperatures. Though we are still 16.2% above levels at this same time last year, storage has now dipped below the 5 year average by -1.6%.
The Baker Hughes exploration gas rig count remained the same from last week, for a total of 129 rigs. This is 65 fewer rigs than the 194 in operation at this time one year ago.
Weather Update
The cold temperatures have receded north and settled in the northwest region. Warmer temperatures are anticipated throughout the southeast.