Electricity Markets
The NYISO and ISO-NE continued their upward trend as mild temperatures persisted and the Northeast continued through their re-opening procedures. PJM and ERCOT both declined on average with the most significant week-over-week change observed in Texas as anticipated summer peaks in July dropped once again.
Minimal volatility was observed in the daily markets as loads remained manageable as mild temperatures were experienced in the region.
Natural Gas Markets
Forward markets dropped, most significantly in the near-term, as storage remains strong and currently mild summer temperatures alleviated potential strain on natural gas-fired plants.
Futures as of 6/17/2020 versus previous week:| Jul-20 | $1.637 | -$0.173 |
| Aug-20 | $1.725 | -$0.171 |
| Sep-20 | $1.780 | -$0.171 |
| Oct-20 | $1.898 | -$0.145 |
| Nov-20 | $2.307 | -$0.104 |
| Dec-20 | $2.793 | -$0.094 |
Natural Gas Inventory
As of Friday, June 12, 2020 working gas in storage was 2,892 Bcf. According to EIA estimates this represents a net increase of 85 Bcf from the previous week. This is below last year’s injection of 111 Bcf but in line with the 5-year average of 87 Bcf.
The Baker Hughes exploration gas count rose by 3 rigs over the report week to a total of 75. This is 102 fewer rigs than the 177 in operation at this time one year ago.
Weather Update
The 6-10 day NOAA outlook is calling for warmer than normal temperatures throughout most of the US with cooler than normal temperatures expected throughout the Pacific Northwest.