Electricity Markets
There was a sizable spike in forward markets this week, mainly driven by weather over the last few days of the week. Week over week change is substantially more than usual and the biggest since winter of last year. Volatility near term will increase in anticipation of cold weather.
Colder, but more seasonal weather returned this week, bringing more volatility to spot pricing. There also was increased separation in pricing across the different zones. Could see even more volatility next week as a cold snap moves into the Northeast.
Natural Gas Markets
Forward pricing year curves moved up over the past week, mainly driven by near term volatility from cold weather. There was less upward movement in the 2025 and 2026 forward pricing years than there was in 2024.
Futures as of 1/11/2024 versus previous week:
| Current | ||
| Feb-24 | $2.961 | +$0.136 |
| Mar-24 | $2.520 | -$0.040 |
| Apr-24 | $2.491 | -$0.023 |
| May-24 | $2.567 | -$0.003 |
| Jun-24 | $2.701 | -$0.004 |
| Jul-24 | $2.838 | +$0.007 |
Natural Gas Inventory
Working gas in storage was 3,336 BCF as of Friday, January 5th, according to EIA estimates. This represents a net decrease of 140 Bcf from the previous week.
The Baker Hughes exploration decreased by 1 rig, for a total of 117 this week.
Weather Update
Temperatures will be below average across the East Coast and Midwest, and above average across the West Coast
Hurricane Watch: Click here to view the National Hurricane Center site.
New England Faces a Possible Gas Crunch- America is the world’s largest natural-gas producer, but New Englanders’ capacity to stay warm in winter may hinge on the fate of an expensive, 53-year-old import plant that its owner has threatened to shut down.
If you would like to receive the Energy Market Update to your inbox weekly, please click here to submit your name and email address. Disclaimer: This information is provided for the use of our customers and potential customers. Power Management Company assumes no responsibility or liability for the accuracy or completeness of pricing or information in this document. Historical data was obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. It is not intended to provide advice or recommendation. Views are subject to change.