Electricity Markets
Each of the ISO’s saw a small gain in electric pricing over the report week with the exception of ERCOT which had a considerable spike upward. Texas is forecasting very high temps into the early and mid-part of June. The potential for record demand levels and price spikes in Texas continues to exist.
Day-ahead electric prices in ISO-NE saw a small gain on the heels of some below-normal weather for this time of the year.
Natural Gas Markets
Near term natural gas prices saw some small losses over the report week. Industrial demand is still low, but it is assumed that natural gas demand will begin to rise over the next 2 weeks as the country slowly reopens. Exports are down and it is unclear if they will resume to their pre-pandemic levels.
Futures as of 6/3/2020 versus previous week:
| Jul-20 | $1.821 | -$0.065 |
| Aug-20 | $1.915 | -$0.057 |
| Sep-20 | $1.969 | -$0.055 |
| Oct-20 | $2.053 | -$0.049 |
| Nov-20 | $2.396 | -$0.014 |
| Dec-20 | $2.840 | +$0.026 |
Natural Gas Inventory
As of Friday, May 29, 2020 working gas in storage was 2,714 Bcf. According to EIA estimates this represents a net increase of 102 Bcf from the previous week. This is close to the five-year average for the correlating week which is 103 Bcf.
The Baker Hughes exploration gas count fell 1 rig over the report week to a total of 76. This is 110 fewer rigs than the 186 in operation at this time one year ago.
Weather Update
The 6-10 day NOAA outlook is calling for cooler temperatures along both the east and west coasts with a pocket of warmer temperatures along the Great Plains.
National Weather Service Updates (NOAA)
Hurricane Watch: No Current Hurricanes Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook:
Click here to view La Nina and El Nino status.
Energy News
ERCOT reserve margin up for summer 2020, energy alerts still possible
The ERCOT region will likely experience record electric use this summer driven by summer heat
Shale Investment in U.S. Seen Falling by Half
Investment in the U.S. shale sector will drop by half this year, the International Energy Agency said Wednesday, predicting a period of pain for producers, even as oil prices rally.
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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 without notice.