MARKET CONTINUES TO SHOOT SKYWARD, PASSING $7.00
THE NATURAL GAS MARKET ROSE OVER A DOLLAR LAST WEEK.
Storage concerns for next winter continued to drive the price of Natural Gas up and up with no ceiling in sight.
A combination of storage worries, Ukraine worries, and cooler weather sent the market up more than a dollar last week, even with the market closing Friday.
We now have an almost 25% deficit from last year and are well below the five-year average. Higher expectations of LNG exports do not bode well for injection season. Either does E.U. grumbling about finally sanctioning Russian oil and gas.
WEEKLY GAS STORAGE REPORT
Natural Gas more than a dollar this week, even with the markets closed for Good Friday.
This comes from multiple worries; winter storage for next year (We are 24% below last year), Ukraine worries (The E.U. is now making indications they may sanction Russian oil and gas), and a cool front across the U.S.
Weather:
MILDER WEATHER WILL HOPEFULLY LEAD TO LOWER DEMAND
The cooler spring is worrying investors as we are now back to a more than 20% deficit in storage inventories from last year. A warm front has pushed up from the Bahamas to moderate temperatures in the Eastern half of the U.S. This weather may be one of the few hopes to break this rising gas price cycle.
Electricity:
Electricity also jumped this week, with both the BGE Hub and the Ad Hub seeing a $5.00 per mWh over last week. However, this number may drop just a bit if we see lower demand this week due to milder weather.
CONSTELLATION FORWARD POWER PRICING AD HUB
CONSTELLATION FORWARD POWER PRICING BGE HUB
Electricity:
VS ALL-TIME CONTRACT LOWS 4/1/22
VS ALL-TIME CONTRACT LOWS 4/8/22
