Electricity Markets
Forward pricing across all markets saw a sizable drop over the last week. This was largely driven by actual energy demand not meeting market expectation. If expected summer heat materializes, markets could continue to trend upward throughout the summer.
Warm weather this week brought some volatility to the spot markets, but spot pricing still stayed within a reasonable range.
Natural Gas Markets
June 2024 settled at $2.49/dth, highest since February. Gas markets overall still remain strong. Winter 2024 continues to show optimal pricing. 2025 also looks good. However, if warm weather depletes storage, it could put upward pressure on gas markets.
Futures as of 5/30/2024 versus previous week:
| Current | ||
| Jul-24 | $2.618 | -$0.317 |
| Aug-24 | $2.674 | -$0.317 |
| Sep-24 | $2.652 | -$0.288 |
| Oct-24 | $2.732 | -$0.271 |
| Nov-24 | $3.073 | -$0.214 |
| Dec-24 | $3.521 | -$0.176 |
Natural Gas Inventory
Working gas in storage was 2,795 BCF as of Friday, May 24th, according to EIA estimates. This represents a net increase of 84 Bcf from the previous week.
The Baker Hughes exploration rig count increase by 1 rig, for a total of 100 this week.
Weather Update
Temperatures are expected to 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.
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