Volume 17, Issue 16 | May 18, 2020

Editor's Note

A Strong Storage Injection as we Transition to Warmer Weather

Weekly review for May 9 - May 15, 2020

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, May 8, 2020 was 2,422 BCF.  This was an increase of 103 BCF from the previous week and was in line with what the market was expecting.  Storage levels are 799 BCF (49.2%) higher than a year ago, and 413 BCF (20.6%) higher than the 5 year average for this date.  
 
As we head towards summer, we are expecting some warmer than normal weather in our region.  Both the 6-10 day and 8-14 day outlooks from the National Weather Service are predicting warmer than normal temperatures for the Mid-Atlantic region.
 
Prices were down sharply this week for both gas and power.  At the end of the week, the NYMEX natural gas 12-month strip was down 5.4%, while the PJM West Hub 12-month forward curve was down 6.4%.    
 
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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

  

 

**Nov-19 

**Dec-19 

**Jan-20 

**Feb-20 

**Mar-20 

**Apr-20 

Normal 

 460

 690

863 

 717

546 

236

 Actual

 568

 709

701

 614

372

296

Departure from Normal 

23%, Colder 

3%, Colder 

19%, Warmer 

14%, Warmer 

32%, Warmer 

25%, Colder 

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.