WHAT GOES UP, MUST COME DOWN …AT LEAST TEMPORARILY
PROFIT-TAKING DROPPED THE MARKET BY ALMOST $1.50 LAST WEEK.
After climbing more than a dollar the previous week, the market reversed course, dropping from $8.07 to $6.59 this past week.
The drop-off was caused mainly by investors selling off and taking profits after a near-record run of gains. Mild weather could continue this market slide, but many market fundamentals could send the market skyward again, including lagging production and increased demand. Ukraine’s fears also make this price retreat very fragile. Though, Europe’s demand for natural gas is waning with the warmer weather.
MILDER WEATHER IS ON THE WAY
The milder weather should continue, tamping down demand and possibly lowering the natural gas market. However, bullish market fundamentals are still in play, including lagging production, and rising LNG exports and the situation in Ukraine is always a danger to affecting the market.
CONSTELLATION FORWARD POWER PRICING AD HUB
CONSTELLATION FORWARD POWER PRICING BGE HUB
VS ALL-TIME CONTRACT LOWS 4/8/22
Electricity also dropped at the end of the week after climbing to near record highs. As of April 14th, the percentage above all-time lows for Constellation contracts had risen to over 100%
VS ALL-TIME CONTRACT LOWS 4/14/22
