Electricity Markets
Forward markets dropped significantly over the past week. This decrease was largely driven by the combination of continued mild weather and strong natural gas production. This strong trend could continue in the coming weeks.
4 straight weeks of significant warmth has kept spot pricing lower, but daily volatility still exists.
Natural Gas Markets
2024 forward pricing has fallen below 2023 historical settlement values. The next 4 months are all currently below $2/dth. Spring 2025 and 2026 saw sizable dips in pricing.
Futures as of 2/15/2024 versus previous week:
| Current | ||
| Mar-24 | $1.640 | -$0.296 |
| Apr-24 | $1.692 | -$0.265 |
| May-24 | $1.806 | -$0.241 |
| Jun-24 | $1.982 | -$0.226 |
| Jul-24 | $2.177 | -$0.205 |
| Aug-24 | $2.258 | -$0.187 |
Natural Gas Inventory
Working gas in storage was 2,535 BCF as of Friday, February 9th, according to EIA estimates. This represents a net decrease of 49 Bcf from the previous week.
The Baker Hughes exploration remained unchanged, for a total of 121 this week.
Weather Update
Temperatures will be above average across the Midwest, and below average across the West Coast
Hurricane Watch: Click here to view the National Hurricane Center site.
News : US gas production tracks near records as market awaits moderation- Having fully recovered from mid-January freeze-offs, US gas production is back within reach of record levels even as forecasters project output will moderate on the heels of 2023’s decline in drilling activity.
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