Electricity Markets
![](https://www.powermgt.com/wp-content/uploads/2019/12/12M-Fwd-Avg-1.png)
Electric markets saw another drop as we moved into the holiday week. Warmer temperatures and lower demand brought down rates in the near-term and continue to afford incredible value in outward years.
A brief cold spell caused an expected surge in the daily markets that quickly quieted as temperatures rose back to, and above, the normal range.
Natural Gas Markets
![](https://www.powermgt.com/wp-content/uploads/2019/12/NG-YOY-1.png)
Six-Month Natural Gas Futures
Futures as of 12/25/2019 versus previous week:Feb-20 | $2.229 | -$0.035 |
Mar-20 | $2.180 | -$0.031 |
Apr-20 | $2.170 | +$0.003 |
May-20 | $2.209 | +$0.018 |
Jun-20 | $2.264 | +$0.023 |
Jul-20 | $2.320 | +$0.028 |
Natural Gas Inventory
![](https://www.powermgt.com/wp-content/uploads/2019/12/Storage-Report.png)
The EIA reported a draw from storage of 161 Bcf. Working gas in storage was 3,250 Bcf as of Friday, December 20, 2019. This was the second week in a row that the reported withdrawal surpassed industry expectations; median estimates among major analysts ranged from 147 to 158 Bcf. Despite this pull, the NYMEX saw minimal fluctuation, an increase of only $.002/dth over rates already trending $.08 below the day before, before swift dropping back to close the day, and January 2020’s contract, down $.136 to $2.158.
![](https://www.powermgt.com/wp-content/uploads/2019/12/Rig-Count-3.png)
The Baker Hughes exploration gas rig count remained steady from last week for a total of 125. This is 73 fewer rigs than the 198 in operation at this time one year ago.
Weather Update
![](https://www.powermgt.com/wp-content/uploads/2019/12/Temp-Probability-1.png)
Temperatures are expected to be cooler than normal for the western half of the United States. Normal temperatures are expected throughout the East with a small band of slightly above-normal temperatures predicted along the coast and in South Texas.