Electricity Markets
We have seen Texas come back within normal range as things settle down and are under control. All other markets have seen a decrease over the last week and even compared to a month ago. Rates from this time last year are lower than current forwards.
February was overall colder than normal, and we could see that in the daily electric markets and the volatility that occurred over last month. Prices have come back down with the onset of warmer temperatures.
Natural Gas Markets
With milder weather predicted we have seen prices soften. Week over week, the Algonquin basis was flat, while the NYMEX 12-month strip was up roughly $.03 from last week. We did seen some volatility within the daily markets as the issues in Texas settled and some colder than normal temperatures, but overall the week ended with little change.
.
Futures as of 3/3/2021 versus previous week:
|
Apr-21 |
$2.816 |
+$0.021 |
|
May-21 |
$2.849 |
+$0.027 |
|
Jun-21 |
$2.895 |
+$0.024 |
|
Jul-21 |
$2.944 |
+$0.023 |
|
Aug-21 |
$2.964 |
+$0.027 |
|
Sep-21 |
$2.953 |
+$0.027 |
Natural Gas Inventory
As of Friday, February 26, 2021 working gas in storage was 1,845 Bcf. According to EIA estimates this represents a net decrease of 98 Bcf from the previous week. This withdrawal was lower than market expectation, which created a decrease in NYMEX rates. We are still below last year and the 5 year average levels.
The Baker Hughes exploration gas count remained the previous week for a total of 92 rigs. This is 17 fewer rigs than the 109 in operation at this time one year ago.
Weather Update
Most of the CONUS is expected to see colder than normal temperatures in the 6-to-10-day forecast. This could bring on higher prices in the natural gas markets.
National Weather Service Updates (NOAA)
Hurricane Watch: No 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
CERAWEEK: Utilities see place for gas, nuclear in power mix even if unpopular
Grid reliability and affordability will require the preservation of natural gas and nuclear in the generation mix for years to come, despite opposition from environmentalists and some policymakers, electric utility executives said March 4 at the CERAWeek by IHS Markit conference.
Everyone is asking, why?’: Texas lawmakers grill generators, regulators on mass outages
Legislative hearings on the weather events that nearly ground Texas’ grid to a total stop last week began in earnest Thursday, with retail generators, the grid operator and the state’s utility
commission all testifying before Texas Senate and House committees.
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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.