Electricity Markets
Forward markets saw a sizable drop over the past week. Expected demand was not met in response to last weeks heatwave. Volatility in the forward markets has been higher than usual over the past month, and is expected to continue as we head into summer.
Last week’s record heatwave subsided over the weekend, but temperatures remained above average. Northeast spot markets saw the largest price spike since mid-January. Spot markets came back down to start the week, but still remain higher than what has been observed over the past few months.
Natural Gas Markets
July 2024 settled at $2.61/dth, the highest since January of this year. Markets rallied to end the month after prompt month gas pricing was over $2.80/dth for most of the month. Winter 2024-2025 came down slightly over the past week. Overall, gas markets remain good but uncertainty lingers into future years and beyond.
Futures as of 6/27/2024 versus previous week:
| Current | ||
| Aug-24 | $2.711 | -$0.222 |
| Sep-24 | $2.704 | -$0.204 |
| Oct-24 | $2.794 | -$0.187 |
| Nov-24 | $3.181 | -$0.160 |
| Dec-24 | $3.644 | -$0.145 |
| Jan-25 | $3.909 | -$0.142 |
Natural Gas Inventory
Working gas in storage was 3,097 BCF as of Friday, June 21st, according to EIA estimates. This represents a net increase of 52 Bcf from the previous week.
The Baker Hughes exploration rig count decreased by 1 rig, for a total of 97 this week.
Weather Update
Temperatures will be above average across most of the Continental United States, except for the Upper Midwest
Hurricane Watch: Click here to view the National Hurricane Center site.
Consumer Alert: New York mandates EV charging stations in new construction- As sales of electric vehicles are slowing, New York is putting charging stations on the fast track with newly-passed legislation that requires new commercial properties, private homes, and apartment complexes to have electric vehicle charging stations or electric-vehicle ready parking places.
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