Volume 18, Issue 5 | March 8, 2021

Editor's Note

Market Moves Past Mid-February Chaos

Week in Review for February 28 March 6, 2021

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, February 26, 2021 was 1,845 BCF.  This was a decrease of 98 BCF from the previous week, much lower than industry expectations, and perhaps impacted by the gas market chaos of the previous week which included a storage withdrawal of 338, the largest since January 2018. Inventories are now 277 BCF lower than last year at this time, 178 BCF below the 5-year average.
 
Energy markets were relatively calm this week.  Spot prices have been tame since the highs of February 17 & 18 and the forward market did not move significantly this week: the NYMEX natural gas 12-month strip (Apr. 21-Mar. 22) ended down 0.7% and the PJM Western Hub 12-month strip was up 0.4%.  Weather forecasts for the Mid-Atlantic are expecting a warmer week for March 7 through 13 with a return to more normal weather afterwards. 
 
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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

  

 

Sep-20 

Oct-20 

**Nov-20 

**Dec-20 

**Jan-21 

**Feb-21 

Normal 

 260

 56

467

 669

848

677

 Actual

 187

 32

321

 731

819

763

Departure from Normal 

28%,
Colder 

43%,
Colder 

31%,
Warmer 

9%,
Colder 

3%,
Warmer 

13%,
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.