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WEEKLY MARKET UPDATE
June 25, 2020
Natural Gas

Natural gas futures continue to fall in anticipation of weakened demand. July 2020 contracts are down another 10+ cents today prior to their final settlement tomorrow.

Today's injection of 120 Bcf of gas into storage was much larger than expected and raised total gas in storage over 3 Tcf, 18% above the 5 year average.
Electricity

The 30 day average price of real time power continues to climb with summer cooling demand, up more than $2/MWh from last week.

Power futures are down slightly from last week. The 12 month strip is down 42 cents from last week to $26.91/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.
Market bullishness for a late-2020 rally in US natural gas prices continues to fade recently amid stabilizing production, continued pandemic-related demand weakness and rising storage inventories.
On June 22, fourth-quarter Henry Hub gas prices tumbled to their lowest since late March, settling at an average of just $2.313/MMBtu. In early May, the Q4 forward curve had edged up to an annual high at over $2.70/MMBtu, S&P Global Platts most recently published M2MS data shows.
Weaker benchmark forward prices have also accompanied a slower-than-anticipated recovery in gas demand, fueled by a slowdown in LNG exports and continued weakness in the industrial sector. According to Platts Analytics, current weakness in the industrial sector – where demand is down by over 2 Bcf/d in June, compared to year-ago levels
 
WEATHER WATCH
 
NOAA 8-14 Day Outlook
NOAA 30 Day Outlook
 
 
 
 
 

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