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WEEKLY MARKET UPDATE
February 1, 2018
Natural Gas

February 2018 futures finished with a strong close on Monday of $3.631/MMBtu. This is the highest settlement for any month since January 2017.
Since taking over as the prompt month, March 2018 futures have fallen over 30 cents, down around 15 today following a smaller than anticipated storage withdrawal.
Electricity

The 30 day average price of power has continued to fall due to the return to more normal power prices in the real-time market.


The drop in the 12 and 24 month futures strips that occurred yesterday is largely due to the February 2018 contract coming off the board.That contract finished trading Wednesday at $51.15/MWh.
 
 
12 & 24 Month NYMEX Strip
12 & 24 Month Zone A Power Strip
 
 
 
This document is intended for indicative purposes only. All information contained within this report is acquired from third party sources and EnergyMark makes no representations or warranties, express or implied, as to the accuracy of the information provided herein. EnergyMark is not liable for any actions or decisions made in reliance on the information provided in the report.
 
The bomb cyclone weather event in early January 2018 resulted in record levels of U.S. natural gas demand and elevated wholesale natural gas and power prices around the country as reported in a special EIA analysis. A constrained natural gas pipeline network led to a significant increase in oil-fired and dual-fuel generation in New England and New York, and, to a lesser extent, in the Mid-Atlantic.
Day-ahead daily average peak-period power prices for January 5, 2018, one of the coldest days of the weather event, reached $247 per megawatthour (MWh) in New England and New York and $262/MWh in the Mid-Atlantic, compared with $30MWh–$50/MWh average prices in the preceding six weeks.
In New York, natural gas makes up more than half of the state’s total generating capacity, and about 70% of natural gas capacity can switch to oil. About 20% of oil capacity can switch to natural gas, and 13% of coal capacity can switch to oil or natural gas

Read the full article here
WEATHER WATCH
 
NOAA 8-14 Day Outlook
NOAA 30 Day Outlook
 
 
 
 

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