FEARS OF SANCTIONS ON RUSSIAN ENERGY DRIVE MARKET HIGHER
STILL, NO ENERGY SANCTIONS, BUT SUPPORT IS INCREASING
As the Russian invasion of Ukraine continues, multiple sanctions have been laid on Russia, so far to no avail. Energy sanctions on Russian energy are among the last resort as they will cause pain in Europe and the U.S.
Natural Gas has topped $5.00 in the last few days, and the actual application of energy sanctions will send oil and gas prices skyrocketing.
Fears of Russian supply are growing less as spring arrives but are worrying those looking to next winter’s supply levels.
Sanctions on Russian finance and targeted at certain Russian oligarchs, including Putin himself, have not affected Russia’s invasion, though it has cratered the Russian Ruble and the Russian market. Moreover, these sanctions leave Russian energy, which accounts for 43% of Russia’s economy, as one of the only sanctions left.
Production continues to increase incrementally, with 94.1 Bcf produced last week. However, this is still not enough to keep up with demand or to replace Russian oil and natural gas, should sanctions be applied.
We are just about three weeks away from injection season, and currently, we have 11.6% less natural gas than we did last year and 13.4% less than the five-year average, which does not bode well for pricing next winter.
What Is Henry Hub?
Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX).
PJM BGE FORWARD POWER PRICING
PJM ADHUB FORWARD POWER PRICING
HENRY HUB NATURAL GAS VS PJM ADHUB FORWARD PRICING
BELOW NORMAL TEMPS TO BE FOLLOWED BY VERY AVERAGE TEMPS ACROSS US
While temperatures continue to moderate, fears of sanctions on Russian energy have pushed the gas market near $5.00
National natural gas demand will be moderate Monday as mild to warm conditions rule most southern and eastern U.S. with highs of the 50s to 80s.
Later in the week, weather systems with colder than average temperatures will sweep across the Midwest and Ohio Valley, with rain, snow, and chilly lows in the 20s and 30s increasing regional demand. Cold air advances into the southern and eastern region as the week progresses, leading to solid natural gas demand through the weekend.
