Electricity Markets
Forward pricing again increased over the past week, except Texas which saw a slight drop. Gas prices increased over the past week, driving an increase in the electric forward markets. Forward markets have climbed steadily since winter and are expected to keep climbing as this summer is expected to be hot.
Summer like heat returned to the Northeast, and as a result drove up spot pricing to end the week. Expect spot pricing to be a little more volatile as more summer like warmth is expected.
Natural Gas Markets
2024 forward pricing has increased significantly in the near term. 2024 forward pricing is beginning to draw closer to 2025 and 2026 forward pricing. The dwindling natural gas storage surplus could bring near term forward pricing closer to what would normally be seen in the markets.
Futures as of 5/23/2024 versus previous week:
| Current | ||
| Jun-24 | $2.672 | +$0.214 |
| Jul-24 | $2.935 | +$0.267 |
| Aug-24 | $2.991 | +$0.255 |
| Sep-24 | $2.940 | +$0.235 |
| Oct-24 | $3.003 | +$0.230 |
| Nov-24 | $3.287 | +$0.173 |
Natural Gas Inventory
Working gas in storage was 2,711 BCF as of Friday, May 17th, according to EIA estimates. This represents a net increase of 78 Bcf from the previous week.
The Baker Hughes exploration rig count decreased by 4 rigs, for a total of 99 this week.
Weather Update
Most of the Continental United States will be above average, except for some portions of the Southeast
Hurricane Watch: Click here to view the National Hurricane Center site.
News : Potential record-setting hurricane season is forecast and may weaken energy demand, prices- The National Oceanic and Atmospheric Administration on May 23 projected the most tropical cyclones ever in its early hurricane season forecast, and such storms could weaken energy demand and prices in landfall areas during what may be an otherwise warmer-than-normal summer.
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.