Electricity Markets
All forward markets except NY came down over the past week. However, NY and PJM continue to trend upward with time and are slowly consolidating. New England markets showed a sizable decrease, mainly driven by the basis. Extended cold could cause the markets to spike.
Summer like temperatures to start October caused a slight run up in spot pricing to start the month. Spot pricing should see relief as fall temperatures return to the Northeast.
Natural Gas Markets
Winter 2024 continues to trade at low levels. 2024 and 2025 forward pricing years continue to consolidate. 2025 and 2026 show very similar pricing except for the winter, for which there is a premium for the 2026 forward pricing year
Futures as of 10/5/2023 versus previous week:
| Current | ||
| Nov-23 | $3.014 | +$0.088 |
| Dec-23 | $3.366 | +$0.059 |
| Jan-24 | $3.612 | +$0.045 |
| Feb-24 | $3.514 | +$0.045 |
| Mar-24 | $3.263 | +$0.050 |
| Apr-24 | $3.058 | +$0.067 |
Natural Gas Inventory
Working gas in storage was 3,445 BCF as of Friday, September 29th, according to EIA estimates. This represents a net increase of 86 Bcf from the previous week.
The Baker Hughes exploration decreased by 2 rigs, for a total of 116 this week.
Weather Update
Temperatures will be below average across the East Coast and Southern Plains, and above average across the West Coast and Midwest
Hurricane Watch: Click here to view the National Hurricane Center site.
Pace of Coal Retirements Increases Near-Term Reliability Risks- Warnings about a pending grid reliability crisis are increasing, and fingers point to the premature retirement of dispatchable electricity resources as the primary threat
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