NATURAL GAS SNAPSHOT:

MARKET IN A WATCH, WAIT AND SEE MODE

Milder forecasts and higher European pandemic numbers, offset by higher-than-expected withdrawal, kept the market mostly waiting and seeing.

We are close to a typical shoulder month in April. A shoulder month is a month typically low demand. Warm enough to turn off the heaters, but not warm enough to turn on the AC

A mild winter, record-breaking LNG imports, and increased gas production from Norway could help Europe replace Russian gas if either side decides to cut off the supply. Norway is 7th in the world in Natural Gas Production.

WEEKLY GAS STORAGE REPORT

FORWARD POWER PRICING

Forward power pricing is moving into the $55.00/MWh range.

Constellation has the forward power pricing as 77% above the all-time contract record low.

MID ATLANTIC FORWARD POWER PRICING

MIDWEST FORWARD POWER PRICING

WEATHER OUTLOOK:

Milder weather is on the way.

If things can calm down a bit in Europe with the possibility of the EU finding other gas sources in Norway and Algeria, we could see a sharp drop in pricing closer to $4.00.

The closer we get to warmer weather, the less a Russian oil and gas shutoff will hurt Europe.