HIGH POPULATION CITIES SHOULD SEE LOWER DEMAND
Milder weather is projected for mid-April, but we may still see a withdrawal this week of 25-35 Bcf. This late cold snap is hurting our chances to rebuild gas storage for the upcoming winter, which may make for an even worse market than we had this past winter.
DESPITE THE MID-WEEK DIP, THE MARKET STAYS STABLE, UP JUST 10 CENTS.
WINTER 2022 WORRIES KEEP THE MARKET ELEVATED.
- Natural gas futures continued to strengthen Friday as production data pointed to a steep decline in output, while export demand remained strong. This is pointing towards an uphill climb to replenish stores for next winter.
- Production was off by almost 2.59 Bcf/d month over month as we saw the coldest January since 2014 nationwide.
- Milder weather forecasts may alleviate some of this high-priced market if nothing else interferes. We even had our first injection of the year last week (+26 Bcf)
CONSTELLATION FORWARD POWER PRICING BGE HUB
CONSTELLATION FORWARD POWER PRICING AD HUB
EIA GAS STORAGE REPORT FOR 3/25/22
VS ALL-TIME CONTRACT LOWS 3/18/22
VS ALL-TIME CONTRACT LOWS 3/25/22
•Electricity prices continue to rise with Constellations pricing vs. all-time lows jumping 7% this last week. With higher electricity demand, summer is around the corner as air conditioners get turned on.
•While Russia and Ukraine continue to negotiate, and Russia “claims” it is pulling back in some areas such as Kyiv, the war is still extremely intense. And, worries about interrupting oil flows are scaring the market as the conflict enters; its second month.
