Volume 18, Issue 10 | April 19, 2021

Editor's Note

2023 & 2024 at a Discount

Week in review for April 11 17, 2021

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday April 9 2021 was 1,824 BCF.  This was a decrease of 61 BCF from the previous week, slightly lower than market expectations. Inventories are now 242 BCF lower than last year at this time, but back above the 5-year average (by 11 BCF) after dipping below in February.

Forward energy markets were up this week. The NYMEX natural gas 12-month strip (May21-Apr22) ended up 3.3% and the PJM Western Hub ATC (7X24) 12-month strip was up 2.7%.  Looking at Calendar strips, for both power and gas, 2023 and 2024 are trading at a discount to both 2022 and 2025.  All strips are much closer to the 5-Year minimum versus the 5-Year Maximum as shown below.

 


 
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

  

 

Oct-20 

**Nov-20 

**Dec-20 

**Jan-20 

**Feb-21 

**Mar-21 

Normal 

 56

 467

669

 848

677

546

 Actual

 32

 321

731

 819

763

516

Departure from Normal 

43%,
Colder 

31%,
Warmer 

9%,
Colder 

3%,
Warmer 

13%,
Colder 

5%,
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.