Volume 17, Issue 38 | November 16, 2020

Editor's Note

Prices Mixed This Week Amidst a Slow Start to the Heating Season

Weekly review for November 7 November 13, 2020

 
On Friday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, November 6, 2020 was 3,927 BCF.  This was an increase of 8 BCF from the previous week and was a higher injection than the market was expecting.  Storage levels are 196 BCF (5.3%) higher than a year ago, and 176 BCF (4.7%) higher than the 5 year average for this date.
  
November is off to a warm start in our region.  For the first 12 days of the month, Heating Degree Days as measured at Reagan Washington National Airport have been approximately 44% warmer than the 10 year average.  The National Weather Service 6-10 day outlook predicts cooler than normal temperatures for our region, while the 8-14 day outlook predicts a return to warmer than normal temperatures.
 
Prices were mixed this week for gas and power.  At the end of the week, the NYMEX natural gas 12-month strip was up 0.3%, while the PJM West Hub 12-month forward curve was down 3.2%.  
 
 
 
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

  

 

May-20 

Jun-20 

Jul-20 

Aug-20 

Sep-20 

Oct-20 

Normal 

 159

 356

527 

 450

260

56

 Actual

 94

 360

586

 453

187

32

Departure from Normal 

41%, Colder 

1%, Warmer 

11%, Warmer 

1%, Warmer 

28%, Colder 

43%, 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.