Energy Market Update

Natural Gas

Despite forecasts for substantially colder temperatures across most parts of the country, natural gas price changes at the end of the report week were still trending downward. The Henry Hub price declined approximately 6.1% for the week. At the NYMEX Henry Hub natural gas for January’s delivery opened up on Monday 12/05 at $3.458 and closed Sunday 12/11 at $3.248 per gallon. Consumption of natural gas rose this week, in conjunction with reduced supply. Domestic consumption rose 18.4 percent, according to data released by Bentek, with larger gains near the end of the report week. The largest gains came from the residential and commercial sectors, as well as the electric power sector.

Electricity

Last week average temperature was 8⁰ F above normal. Despite the warm temperatures, the load in NYC increase 4% over the previous week and with the increased demand were higher daily prices. Prices for last week were up $5.50 per MWh compared to last week to $47.15 per MWh. Temperatures for this upcoming week are forecasted to be about 3⁰ F above normal. On peak prices should average in the high $40’s to possibly the low $50 per MWh. This past week, NYC January/February On-Peak was down $4.00/MWh to around $65.00 per MWh as the natural gas prices came down 26 cents/MMbtu and delivered basis to NYC dropped 50 cents/MMbtu.