NATURAL GAS: MARKET CONTINUES TO DROP EVEN AFTER RUSSIA INVADES UKRAINE
WHY DID PRICES NOT SKYROCKET AFTER THE INVASION?
Contrary to expectations, the price of Natural Gas did not increase significantly after the invasion of Ukraine. The main reason is that the sanctions placed on Russia, though they may be the toughest ever laid on by the US and the EU, did not include sanctions on Russian energy, though it is still on the table.
Russia also increased the flow of Natural Gas to Europe. Gazprom is trying to demonstrate that they are a reliable source of Natural Gas and a viable commercial partner, not just an extension of Vladimir Putin.
RUSSIA TO EUROPE PIPELINES
Production last week showed a robust 95.1 Bcf/d. This number will likely rise throughout the year, reaching above 97.0 Bcf/d by December 2022.
Unlike last month, there was little race-up to the end of the month. The market for February, prompt month jumped $1.60 in one day so that the NYMEX for February closed at $6.26. For March prompt month, the NYMEX closed closer to $4.50.
MIDWEST FORWARD POWER PRICING:
MID ATLANTIC FORWARD POWER PRICING:
WEATHER: BELOW NORMAL TEMPS MOVE EAST, BUT NORMAL TEMPS ARE RISING
Below-average temperatures are on the way at the end of the 8-14 day forecast for most of the country. However, the average temperature is rising as we get closer to spring.
