Electricity Markets
Forward pricing in PJM and NYISO has come down in response to continued warmer weather. Rates from this time last year are lower than current forwards. Energy pricing remains incredibly competitive for fixed options.
Prices are continuing to come back down with the onset of warmer temperatures. Demand in the daily market has fallen as warmer temperatures and milder weather moves through the region. This has led to decrease in volatility for NYISO Zone B and PJM.
Natural Gas Markets
Natural gas pricing throughout the remainder of 2021 is trading within a historically normal range after falling an average of $0.13 over the last week. Adversely, we saw a rise of $0.04 in the Algonquin basis.
.
Futures as of 3/10/2021 versus previous week:
| Apr-21 | $2.712 | -$0.104 |
| May-21 | $2.769 | -$0.080 |
| Jun-21 | $2.828 | -$0.067 |
| Jul-21 | $2.851 | -$0.093 |
| Aug-21 | $2.841 | -$0.123 |
| Sep-21 | $2.853 | -$0.100 |
Natural Gas Inventory
As of Friday, March 5, 2021 working gas in storage was 1,793 Bcf. According to EIA estimates this represents a net decrease of 52 Bcf from the previous week. Next week could mark the first injection into storage. We are still below last year and the 5 year average levels.
The Baker Hughes exploration gas count remained the same from the previous week for a total of 92 rigs. This is 15 fewer rigs than the 107 in operation at this time one year ago.
Weather Update
The West and Southeast are expected to see cooler than normal temperature while the remaining CONUS is expected to see warmer than normal temperatures in the 6-to-10-day forecast.
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
US EIA lifts forecasts for 2021-22 natural gas and power consumption
Higher forecasted crude oil prices and an assumptions of an improved US economic outlook prompted the Energy Information Administration March9 to boost its forecasts for natural gas production and consumption, despite the February freeze that crimped production in the first quarter of 2021.
AUSTIN – Harvard Kennedy School’s William Hogan is credited with designing the Texas energy market. As Texans froze and their water pipes burst, he reportedly remarked that the state’s energy market has functioned as designed.
If you would like to receive the Energy Market Update to your inbox weekly, please click here to submit your name and email address.
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.