Electricity Markets
Forward electric rates continue to rise across the US as the underlying cost of gas remains volatile. This movement is driven primarily by the increasing costs observed for this upcoming winter.
Pricing in the daily markets observed a quieter week as temperatures remained at or below normal over the market week.
Natural Gas Markets
NYMEX pricing continues to rise through the remainder of 2021 and 2022. Low storage injections amidst lower production is placing the most pressure on the near term where costs rival those observed at the height of the Polar Vortex in 2014.
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Futures as of 9/8/2021 versus previous week:
| Oct-21 | $4.914 | +$0.989 |
| Nov-21 | $4.962 | +$0.967 |
| Dec-21 | $5.046 | +$0.941 |
| Jan-22 | $5.103 | +$0.937 |
| Feb-22 | $4.985 | +$0.896 |
| Mar-22 | $4.609 | +$0.259 |
Natural Gas Inventory
As of Friday, September 3, 2021 working gas in storage was 2,923 Bcf. According to EIA estimates this represents a net increase of 52 Bcf from the previous week.
The Baker Hughes exploration gas count is down from the previous week for a total of 101 rigs. This is 30 more rigs than the 71 in operation at this time one year ago.
Weather Update
Warmer than normal temperatures are expected across much of the contiguous US with cooler than normal temperatures expected along West Coast.
National Weather Service Updates (NOAA)
Hurricane Watch: Nicholas 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 natural gas storage fields adds 52 Bcf, over market expectations US natural gas storage fields added 52 Bcf of working gas for the week ended Sept. 3, according to an Energy Information Administration report released Sept. 9. The addition was much more than the market expected for the week, however, the report failed to quell the rally at Henry Hub as futures sustained highs not seen since 2008. 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 s