Trends in the Energy Market

Current Market News

• NYMEX futures have turned upwards significantly in recent days. Summer futures back over $3.00 / MMBtu. A series of low injections, coupled with rising LNG exports are driving the upward pressure. Prompt month is now September 2023.
  
  
• Texas continues to see extreme heat. It is cooler and less humid in the Midwest and East this week. Potential heat spikes in the east and south are showing up in the American weather model for the second half of August.
  
  
• Natural gas production is up at 101.9 Bcf/day. That is down 0.40 Bcf/day month-over-month, but 3.3 Bcf per day greater than the same period last year.
  
  
• Natural gas inventories in storage have moderated. Inventories are now 12% greater than the five-year average and 22% greater than the same time last year. That is a 7% month-over-moth drop.
  

And yet more...

• Crude oil prompt-month futures are holding ion the $80-$85/bbl. That's an 18% jump over the past month. Expect gas prices to stay relatively high at the pump through this quarter.
  
  
• Economy - Inflation continues to be a significant challenge for the Fed. Food prices are especially impacted. Hiring has remained steady, but overall demand for workers has fallen.
  
  
• Forward electricity prices have trended down the past month but are moving up in response NYMEX gas futures. Texas / ERCOT prices have risen with the ongoing baking temperatures.