"By leveraging climate technologies, we can build a new economic development model based on putting an end to emissions, while breathing new life into economic growth.”
Dr. Sultan Ahmed Al Jabbar
President COP28 UAE & Special Envoy for Climate Change
Azi Feifel
COO PROSPECT RESOURCES
Trends in the Energy Market
Current Market News
NYMEX futures have continued to drop on robust production and mild weather. Storage injections have remained steady. Prompt month is January 2024. As of this writing, winter highs remain under $2.60 / MMBtu.
The start of winter has been quite mild. A strong El Nino is keeping a lock on arctic air. A cold front moves through the parts of the nation next week, but it will be short lived in most places.
Natural gas inventories are 3,719 Bcf, 254 Bcf or 7.3% more than the same period last year and 234 Bcf or 6.7% more than the 5-year average.
European LNG prices are $12.74 per MMbtu and Asian prices are $16.05 per MMbtu.
And yet more...
Despite production cuts, crude oil prompt-month futures have continued down and are holding below $75/bbl. Durable goods have been falling. Overall consumer sentiment is mixed.
Economy - Inflation continues to ease, though prices for rent, insurance, and other services have continued to rise. The hot labor market has started to cool.
After generally falling for several weeks, PJM electricity forwards remain flat, with 2024 remaining the best deal out there. The entire 2024-2028 forward price curve is still trading mid-range. Several NYISO Zones have dropped fairly significantly. ERCOT is slightly down, but it is not the time for long term hedging.
ATLANTA – NERC’s 2023–2024 Winter Reliability Assessment finds that much of North America is again at an elevated risk of having insufficient energy supplies to meet demand in extreme operating conditions. The areas identified as being at elevated risk extend over much of the eastern two-thirds of the continent. In these areas, although resources are adequate for normal winter peak demand, any prolonged, wide-area cold snaps will be challenging due to generator outages and fuel vulnerability, extreme levels of electricity demand, difficulties in accurate forecasting and the risk of firm electricity transfer curtailments.
