Electricity Markets
Forward markets saw an increase week-over-week that is being driven by rising costs in the winter months of 2023-2024. Volatility still remains low in the near-term.
Temperatures varied widely over the past week. Despite the temperature variability, spot pricing remained quiet.
Natural Gas Markets
The gaps between forward pricing years continue to widen with the greatest disparity driven by high winter pricing. Rates continue to remain flat across the summer and fall months.
Futures as of 4/6/2023 versus previous week:
| Current | ||
| May-23 | $2.145 | -$0.247 |
| Jun-23 | $2.365 | -$0.303 |
| Jul-23 | $2.604 | -$0.117 |
| Aug-23 | $2.663 | -$0.024 |
| Sep-23 | $2.637 | -$0.145 |
| Oct-23 | $2.724 | -$0.444 |
Natural Gas Inventory
Working gas in storage was 1,830 BCF as of Friday, March 31st, according to EIA estimates. This represents a net decrease of 23 Bcf from the previous week.
The Baker Hughes exploration decreased by 2 rigs for a total of 158 this week. There are 138 additional rigs in operation than at this time one year ago.
Weather Update
Temperatures will be above average across the East Coast, and below average across the Midwest.
Hurricane Watch: Click here to view the National Hurricane Center site.
Analysis : Low gas prices add more fuel for summer power burn records in 2023- US gas -fired power burn could be on track for another record-setting summer this year, propelled in part by low gas prices which are already giving thefuel an edge over coal generation this spring.
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