Volume 17, Issue 13 | April 27, 2020

Editor's Note

Near Term Prices Rise

Weekly review for April 19 - April 25, 2020

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday April 17, 2020 was 2,140 BCF.  This was an increase of 43 BCF from the previous week. Inventories are now 827 BCF higher than last year at this time, 364 BCF above the 5-year average.
 
After a pause last week, near-term prices continued their rise this week with the NYMEX natural gas 12-month strip (Apr20-Mar21) up 5.1% and PJM Western Hub 12-month strip up 3.1%.  Starting this coming winter both power and gas forward curves are backwardated, with lower prices, still relatively close to their 5 year lows, in 2022-2024.
 
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This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.


Weather

Washington, D.C. Area Cooling/Heating Degree Days

  

 

Oct-19 

**Nov-19 

**Dec-19 

**Jan-20 

**Feb-20 

**Mar-20 

Normal 

 43

 460

460 

 886

717 

556

 Actual

 68

 568

568

 701

614

372

Departure from Normal 

58%, Warmer 

23%, Colder 

3%, Colder 

21%, Warmer 

14%, Warmer 

33%, Warmer 

Cooling degree day (CDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65-degree baseline. If the day’s average temperature is below 65, there are no cooling degree days that day. If the day’s average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.

**Heating degree day (HDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day’s average temperature is less than 65 degrees, then subtract that average temperature from 65 to find the number of heating degree days.