Volume 17, Issue 34 | October 19, 2020

Editor's Note

Gas Price Relatively Low, for Spring 2022 and Beyond

Weekly review for October 11 October 17, 2020

 

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, October 9, 2020 was 3,877 BCF.  This was an increase of 46 BCF from the previous week. Inventories are now 388 BCF higher than last year at this time, 353 BCF above the 5-year average as well as above the previous 5-year high.

This week the NYMEX natural gas 12-month strip (Nov20-Oct21) was up 3.7%.  This is the highest this strip has been in 4 years.  However, prices further out, for Starting April 2022 and extending through 2024, are below where they were last year at this time and remain relatively close to their lows. The PJM Western Hub 12-month strip was up 1.5%.
 
 
 
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

  

 

**Apr-20 

May-20 

Jun-20 

Jul-20 

Aug-20 

Sep-20 

Normal 

 236

 159

356 

 527

450

260

 Actual

 296

 94

360

 586

453

187

Departure from Normal 

25%, Colder 

41%, Colder 

1%, Warmer 

11%, Warmer 

1%, Warmer 

28%, 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.