THE NATURAL GAS MARKET CONTINUES TO PLUMMET
THE MARKET HAS DROPPED ALMOST $2.00 IN 12 DAYS
- As we switch to February pricing, a deep dip has come with the warmer temperatures as Feb. pricing has fallen $1.79 in the last 12 days, even dipping below $5.00 in early trading Monday.
- Part of the delay comes from the forecast of warmer-than-normal temperatures across the Eastern half of the U.S.
- Another delay has hit the reopening of the Freeport LNG facility, which was supposed to reopen fully in December. Instead, that has been pushed back to January.
- This dip in prices is despite lower production and higher demand.
NATURAL GAS STORAGE REPORT
Last week’s withdrawal of -87 Bcf from storage was well below the five-year average of -124 Bcf. This lighter-than-average withdrawal put our storage at .07% above the five-year average. This is the first time we have been above the five-year average since early February 2021.
Warmer weather and another delay in reopening the Freeport LNG facility have sent prices spiraling close to $5.00 and could sink below that.
PJM BGE FORWARD POWER PRICING
PJM ADHUB FORWARD POWER PRICING
NATURAL GAS PRICING VS. ELECTRICITY PRICING
WEATHER: WARMER TEMPS FOLLOW THE PATH OF WINTER STORM ELLIOT
A record-setting Arctic Blast swept across the country over the past week, creating a robust demand while plunging production to nearly 80 Bcf/day on widespread freeze-offs, a bit stronger than the natural gas markets expected.
However, record-setting warmth will spread across the country over the next 12 days for the lightest demand in more than 40 years.
ELECTRICITY: FIRSTENERGY AUCTION
First Energy is holding its second and final auction for next year on January 10, and the results should be announced shortly after. The first auction in October 2022 came in at $122.30 per Mwh or .12230 per kWh.
