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WEEKLY MARKET UPDATE
December 10, 2020
Natural Gas

Natural gas futures fell further from last week before rebounding today. Even after today's rebound, January 2021 contracts are still down around 20 cents from last week.

This week's storage report showed a much larger withdrawal from storage than expected and added momentum to the rebound. Total gas in storage is now 7% ahead of the 5 year average.
Electricity

Stronger real time power prices have pulled the 30 day average nearly $3/MWh higher from this time last week.

Electricity futures crept lower, the 12 month strip briefly sank below $25/MWh. The strip has not broken that level since April in the wake of Covid-19 lockdowns.
 
 
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.
Natural gas-fired generation has generally increased in most U.S. regions since 2015, according to data from the U.S. Energy Information Administration’s (EIA) Power Plant Operations Report. Annual electricity generation from natural gas power plants in the United States increased by 31% in the Northeast region.
The largest increases in U.S. natural gas-fired generation have occurred in the Central and Northeast regions, near the natural gas production area in Appalachia in states such as Ohio, Pennsylvania, and West Virginia. Relatively low natural gas prices have made it more economical to generate electricity using natural gas instead of coal.
When natural gas and coal are similarly priced on a cost-per-energy-content basis, most natural gas-fired generators can produce electricity more efficiently than coal-fired generators, providing an economic advantage in electricity markets.

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

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