Electricity Markets
Forward markets rebounded over the last week, but still remain in a strong position. Markets remain strong in the face of retiring capacity.
Another mild week capped off a near record warm December. More seasonal weather returned at the end of the week, but spot pricing stayed calm for the most part.
Natural Gas Markets
2024 forward pricing curve flattened out over the past week. Winter 2024-2025 also came down. Small movement in 2025 forward pricing. Natural gas storage surpluses are expected to evaporate heading into 2025, which could drive 2025 and 2026 forward pricing years up in the coming months and beyond.
Futures as of 1/4/2024 versus previous week:
| Current | ||
| Feb-24 | $2.825 | +$0.325 |
| Mar-24 | $2.560 | +$0.221 |
| Apr-24 | $2.514 | +$0.195 |
| May-24 | $2.570 | +$0.191 |
| Jun-24 | $2.705 | +$0.179 |
| Jul-24 | $2.831 | +$0.177 |
Natural Gas Inventory
Working gas in storage was 3,476 BCF as of Friday, December 29th, according to EIA estimates. This represents a net decrease of 14 Bcf from the previous week.
The Baker Hughes exploration decreased by 2 rigs, for a total of 118 this week.
Weather Update
Temperatures will be below average across most of the Continental United States
Hurricane Watch: Click here to view the National Hurricane Center site.
BP and Equinor scrap New York offshore wind contract as costs rise- BP and Equinor reached a deal to scrap a contract to sell energy from a planned offshore wind power project to the state of New York, the latest such venture to be knocked off course by worsening industry economics.
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