Electricity Markets
Forward markets came down last week after a cold weather driven run up. Forward markets have tightened up significantly, with risk still existing in the market. Volatility could continue in the coming weeks as gas production freeze offs continue.
A cold snap last week caused significant volatility in spot markets, driving up pricing to highest levels since last winter.
Natural Gas Markets
Outward curves showed very little change over the last week. Most change was near term and was driven by cold weather. The balance of 2024 remains good, 2025 and 2026 are slowly increasing.
Futures as of 1/18/2024 versus previous week:
| Current | ||
| Feb-24 | $2.793 | -$0.168 |
| Mar-24 | $2.426 | -$0.094 |
| Apr-24 | $2.408 | -$0.083 |
| May-24 | $2.469 | -$0.098 |
| Jun-24 | $2.600 | -$0.101 |
| Jul-24 | $2.743 | -$0.095 |
Natural Gas Inventory
Working gas in storage was 3,182 BCF as of Friday, January 12th, according to EIA estimates. This represents a net decrease of 154 Bcf from the previous week.
The Baker Hughes exploration increased by 3 rigs, for a total of 120 this week.
Weather Update
Temperatures will be above average across most of the Continental United States
Hurricane Watch: Click here to view the National Hurricane Center site.
Market Commentary : US Northeast cash gas prices soar on winter storm, higher demand- US Northeast spot gas prices jumped across the board during Jan. 12 trading, as a winter storm is expected to boost demand during the holiday weekend.
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