Electricity Markets
All forward markets saw a sizable drop over the past week, mainly driven by warm weather, strong storage and increased gas production. New England forward markets saw one of their largest week over week decreases since last winter.
Near record warmth returned to the Northeast this past week, keeping spot pricing in check. PJM spot pricing remains elevated in comparison to other areas of the Northeast.
Natural Gas Markets
Minimal movement in forward markets over the past week. Warm weather and strong gas production has kept the balance of 2024 optimal. Winter of 2024 crept up slightly over the past week.
Futures as of 12/14/2023 versus previous week:
| Current | ||
| Jan-24 | $2.383 | -$0.153 |
| Feb-24 | $2.325 | -$0.157 |
| Mar-24 | $2.233 | -$0.121 |
| Apr-24 | $2.245 | -$0.098 |
| May-24 | $2.326 | -$0.099 |
| Jun-24 | $2.482 | -$0.086 |
Natural Gas Inventory
Working gas in storage was 3,664 BCF as of Friday, November 30th, according to EIA estimates. This represents a net decrease of 55 Bcf from the previous week.
The Baker Hughes exploration increased by 3 rigs, for a total of 119 this week.
Weather Update
Temperatures will be at or above average across most of the United States.
Hurricane Watch: Click here to view the National Hurricane Center site.
News : NERC raises North American power system reliability flags as demand could outstrip supply- The North American Electric Reliability Corporation’s 2023 Long-term Reliability Assessment found that most areas face power generation resource adequacy challenges, with many regions projected to have reserve shortages or emerging energy risks, and the incremental mix of resources increases fuel supply concerns as the reliance on just-in-time delivery of natural gas to fuel power generation grows.
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