SUMMER WEATHER OUTLOOK: SAY HELLO TO EL NINO
This summer’s weather could start mild but is expected to warm up as an El Nino arrives in June. This will alter the current pattern of cooler temperatures in the Pacific Northwest from La Nina and replace them with hotter temperatures.
As a result, this will likely bring a much hotter and more humid late summer.
What Is El Nino, Anyway?
El Niño is a climate phenomenon that happens in the tropical Pacific Ocean. Typically, trade winds blow from east to west, pushing warm water toward the western Pacific. This process creates cold, nutrient-rich waters along the west coast of South America.
During El Niño, the trade winds weaken, causing warm water to flow back towards the central and eastern Pacific. This leads to warmer sea surface temperatures in those regions.
Weather Forecast: 6-10 DAY AND 8-14 DAY OUTLOOK
The mild weather we are enjoying has lowered demand and spoiled any rally in the Natural Gas market.
Look for triple-digit injections over the next few weeks that will only grow our supply surplus and keep our pricing for the next few months lower and may drive it even closer to $2.00
PJM ADHUB ON-PEAK ELECTRICITY 2023
The electricity market dropped about $5.00 an MWh last week. Now is an excellent time to lock in future pricing as pricing will begin to rise with higher demand in summer, especially with the arrival of El Nino.
BGE HUB ON-PEAK ELECTRICITY 2023
Natural Gas News
The pricing free fall halted in the near term as Natural Gas producers started shutting down oil rigs. The Baker Hughes Rig Count dropped by 17 last week, a more than 2% drop in rigs. This is important as about 20% of our Natural Gas comes from Associated Natural Gas Production, a byproduct of Oil Drilling.
