Volume 17, Issue 41 | December 14, 2020

Editor's Note

Prices Up After Larger Than Expected Storage Withdrawal

Weekly review for December 5 - December 11, 2020

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, December 4, 2020 was 3,848 BCF.  This was a decrease of 91 BCF from the previous week and was a higher withdrawal than the market was expecting.  Storage levels are 309 BCF (8.7%) higher than a year ago, and 260 BCF (7.2%) higher than the 5 year average for this date.
  
December is off to a cooler than normal start in our region.  For the first 10 days of the month, Heating Degree Days as measured at Reagan Washington National Airport have been approximately 7% higher than the 10 year average.  However, the 8-14 day outlook from the National Weather Service predicts a return to warmer than normal temperatures for the East Coast.
 
Prices were up this week for gas and power.  At the end of the week, the NYMEX natural gas 12-month strip was up 4.1%, while the PJM West Hub 12-month forward curve was up 0.7%.  
 
 
.  
 
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

  

 

Jun-20 

Jul-20 

Aug-20 

Sep-20 

Oct-20 

Nov-20 

Normal 

 356

 527

450

 260

56

467

 Actual

 360

 586

453

 187

32

321

Departure from Normal 

1%, Warmer 

11%,    Warmer 

1%, Warmer 

28%, Colder 

43%, Colder 

31%, 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.