Volume 17, Issue 36 | November 2, 2020

Editor's Note

Lower Than Expected Storage Injection Surprises Market

Weekly review for October 24 October 30, 2020

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, October 23, 2020 was 3,955 Bcf.  This is an increase of 29 Bcf from the previous week. Inventories are currently 285 Bcf higher than last year during this same period and 289 Bcf above the 5-year average.
 
Markets increased at the end of the week on the tails of a lower than expected gas storage injection and reports of higher LNG export demand. As we enter November and the traditional heating season, weather will have an increasing impact on pricing. Current forecasts call for mild temperatures through the middle of the month after a quick blast of colder temperatures early in the week.
 
After decreases at the beginning of the week and increases towards the end, both power and gas curves were close to flat for the week. Overall, the PJM West Hub 12 Month curve decreased 0.67% this week while the NYMEX natural gas 12-month curve increased 0.4%.
 
 
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.