Volume 17, Issue 14 | May 4, 2020

Editor's Note

Cooler Than Normal Temps Will Dominate

Weekly review for April 26 - May 2, 2020

 
On Friday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, April 24, 2020 was 2,210 Bcf.  This is an increase of 70 Bcf from the previous week. Inventories are currently 783 Bcf higher than last year during this same period and 360 Bcf above the 5-year average of 1,850 Bcf.  
 
Cooler than normal temps dominate the next few weeks’ forecast.  While this should bring a slight jump in HDD demand, it won’t come anywhere close to offsetting the demand declines due to COVID-19 shutdowns. The complete demand picture for the near term has yet to come into focus as the market capitulates based on current news cycles.
 
Markets were higher this week as the 12-month Nymex gas curve moved up 1.9% and the 12-month PJM Western Hub increased 0.72%. 
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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.