MARKET DROPS AFTER POSSIBLE RAIL STRIKE AVERTED
A DROP IN PRICING DROPPED AFTER BOTH SIDES AGREED TO SETTLE
- An imminent rail strike sent prices soaring on Wednesday and crashing back just as fast when they averted the strike after a 20-hour negotiating session in Washington, DC.
- The strike would have significantly impacted rail transportation of coal around the country and halted some of the supply.
What is the 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).
SUMMER TEMPS REMAIN HIGH INTO MID-SEPTEMBER
Storage expectations are beginning to loosen up as the weather cooperates. Some are projecting a triple-digit injection this coming Thursday.
Peak afternoon hours of heat also grow shorter as we move into Autumn weather.
NATURAL GAS STORAGE REPORT
- Pricing for Natural Gas fell more than a dollar from a Wednesday high of $9.10 after a rail strike was averted by a 20-hour negotiating session in Washington DC. A rail strike would have impacted the transport and cost of coal, making gas to coal switch that much harder.
- While temperatures remain above average for most of the country, the afternoon peak temperatures are not lasting as long as we move into fall and earlier sunsets. This impacts cooling demand and may even lead to a triple-digit injection in Thursday’s report.
- The FERC calls for more infrastructure pipelines to be built into New England, mainly relying on oil heating and LNG imports. If this infrastructure is completed, it will likely increase domestic demand and raise prices across the country, like we saw after large infrastructure pipelines were completed around 2018.
- Gazprom shut down the Nordstream 1 pipeline on August 30th for maintenance issues and has refused to reopen the channel, citing pipeline leaks. Moscow is also saying that the pipeline will not resume until western sanctions on natural gas are lifted, and Nordstream 2 is put online.
PJM BGE AUGUST 30TH
PJM BGE SEPTEMBER 13TH
PJM ADHUB AUGUST 30TH
PJM ADHUB SEPTEMBER 13TH
