NATURAL GAS STORAGE
NATURAL GAS PRODUCTION
Natural Gas production remains weaker than in the past few months, with output below 100 Bcf/d. The number of working dry gas rigs has dropped to the lowest since January 2022 (102 rigs). As producers continue to shut down operations, the amount we inject will also drop, and the price will increase.
Pricing did increase over the last week, mainly due to the news of the Plaquemines LNG facility conducting testing leading up to the opening of that LNG facility and the continued cutback in natural gas production.
6-10 DAY AND 8-14 DAY OUTLOOK
Weather remains relatively mild, with short-term warmer-than-normal weather in the next ten days in the Southeast, increasing cooling demand. Throughout most of the country, the weather remains mild, but keep an eye on the Eastern Seaboard as temperatures remain persistently above normal in high population centers like New York, Boston, Philadelphia, and Washington D.C. This will have a more considerable impact on any increase in cooling demand throughout the summer.
This Week (May 13-19): Get ready for a mixed bag across the U.S.! Things look comfortably cool up north, with temperatures ranging from the 60s to lower 80s. But down south, it’s heating up! Expect warmth; it might get pretty hot in some places, with temperatures hitting the upper 70s to 90s.
PJM AD HUB FORWARD POWER PRICES
The lack of cooling demand in May has led to lower electricity pricing in the AEP Ad Hub. The 12-month strip showed a decrease of $0.11 per MWh last week, and we have seen some custom pricing drop by almost half a penny in the previous few weeks. This is becoming a typical shoulder month and has become a good time for clients to purchase energy.
POWER BURN DEMANDS CONTINUE TO GROW
ANNOTATED PROMPT MONTH PRICING WITH NOTABLE EVENTS
