Electricity Markets
Forward markets slightly rebounded from last weeks drop off, but still remain at optimal levels. Prospect of a mild winter and strong storage could keep forward markets in a strong position for the coming weeks and beyond.
Temperatures continue to remain way above average, which kept spot pricing stable. Extended warmth could keep spot pricing in check for the coming weeks.
Natural Gas Markets
2025 and 2026 forward pricing years continue to spread apart. Balance of 2024 remains strong for most of the year into next fall. 2024 and 2025 forward pricing years could tighten up as export capabilities increase over the coming year.
Futures as of 12/21/2023 versus previous week:
| Current | ||
| Jan-24 | $2.484 | +$0.101 |
| Feb-24 | $2.389 | +$0.064 |
| Mar-24 | $2.242 | +$0.009 |
| Apr-24 | $2.224 | -$0.021 |
| May-24 | $2.298 | -$0.028 |
| Jun-24 | $2.448 | -$0.034 |
Natural Gas Inventory
Working gas in storage was 3,577 BCF as of Friday, December 15th, according to EIA estimates. This represents a net decrease of 87 Bcf from the previous week.
The Baker Hughes exploration remained unchanged, for a total of 119 this week.
Weather Update
Temperatures will be at or above average across the majority of the United States, with the exception of the Gulf Coast which will be slightly below normal.
Hurricane Watch: Click here to view the National Hurricane Center site.
News : US POWER TRACKER: NYISO forward power, gas prices peak in January, remain down on year- New York Independent System Operator forward power and natural gas prices for the winter peaked in January during November trading, with power and gas forwards declining month on month and year on year. Gas-fired power generation increased significantly in November as power imports declined nearly 50%, according to S&P Global Commodity Insights power market analysts.
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