Energy News:
E.U. Recommends Russian Ban
The E.U. recommends a complete oil, gas, and coal ban on Russian energy. This recommendation carries no official weight, and, so far, only Russian coal has been sanctioned.
But this recommendation is another step closer to Europe banning all Russian energy over the Ukraine invasion. The U.S. will have to make up some of that supply, lowering our domestic supply and increasing pricing.
WEATHER: COOLER TEMPS WILL LIKELY LEAD TO ANOTHER WITHDRAWAL FROM STORAGE
A late cold snap is going to affect the entire nation. This will mean continued heating demand in the Midwest and the East and less demand on the West Coast due to lower A.C. demand. So expect another week or two of withdrawals before we start to inject Natural Gas again regularly.
MARKET BLOWS PAST THE $6.00 MARK
STORAGE WORRIES SEND THE NATURAL GAS MARKET OVER $6.00.
The Natural Gas market jumped $0.75 before leveling off. Highs reached as high as $6.55 before settling near $6.30 for the week.
The sharp jump came due to fears of storage levels for Winter 2022 and a reasonably robust withdrawal on Thursday instead of an injection.
The colder weather is covering the entire U.S., with barely any areas experiencing moderate to warmer weather, also skyrocketing the market.
WEEKLY GAS STORAGE REPORT
The cool weather Spring worries investors as we are now back to a more than 20% deficit in storage inventories from last year. This means we will need a VERY mild summer to make up that difference, and we are projected to have yet another scorching summer in 2022.
CONSTELLATION FORWARD POWER PRICING AD HUB
CONSTELLATION FORWARD POWER PRICING BGE HUB
Forward Power Pricing:
VS ALL-TIME CONTRACT LOWS 3/25/22
VS ALL-TIME CONTRACT LOWS 4/1/22
Forward Power Pricing in the Ad Hub and BGE Hub continue to skyrocket for 2023 while 2024, ’25, and ’26 lag. This pricing may be good news in the future as even just in January, pricing for all four years was reasonably equal.
