Natural Gas
VOLATILITY IS STILL THE KEYWORD
MARKET JUMPS 83 CENTS ON SMALL STORAGE REPORT
- The market jumped 83 cents on Thursday on news of a smaller-than-expected storage report that continued worries about our storage situation going into Winter ’22.
- The closing of the Freeport LNG facility has spooked investors as we are more than $3.00 below our yearly high of $9.45 on June 8.
- Like most inflationary products, electricity has been quick to rise but slow to fall, though it has dropped by approximately $10.00.per mWh in the AdHub and BGE Hub.
NATURAL GAS STORAGE REPORT
- The Natural Gas market has fallen more than $3.00 in the last few months. This downward trend is happening event by event. The Freeport explosion, the announcement that it would be out until late 2022, better than expected storage reports. This can turn just as quickly. If repairs are done ahead of time, more minor storage reports, etc., market conditions could change instantly.
- Next spring is still the sweet spot for starting new contracts, with gas futures down to $4.30 in May and capacity costs next June going down from $50 to $34.00 in Ohio and down almost 50% in the BGE.
Electricity Grid News
Electricity pricing has finally started to catch up to Natural Gas as electricity pricing has dropped roughly $12.00 in the BGE per mWh and $15.00 in the AdHUB.
HEATWAVE STUCK IN THE PLAINS STATES AND MIDWEST
