Energy Newsletter

Weather

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Natural Gas

Gas markets have been reacting to three primary factors in recent days:

1. Ample storage inventory which is now over 3.9 Tcf
2. The transition from significantly milder than normal weather to what will be the first shots of meaningful cold weather impacting demand centers later in the month
3. Production, which appears to be moving by a few Bcf/d due to maintenance and economically driven curtailments
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Power and Gas Forwards

Power and gas forwards are up week-over-week reflecting colder weather forecasts as we enter the winter heating season. The back end of the power curve is down slightly week-over-week.

Power and Gas Forward Curves

PJM Update

PJM load has been below the 5-year average for the last few days. The current 7-day forecast is for relatively mild loads but weather indications for cooler intrusions from the north and west later in the month will be something to keep an eye on.

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Articles of Interest

• US Power generators pump the brakes on coal plant retirements
• Trump has Biden’s Climate Law in his crosshairs
• Fully loaded: the potential impact of large demand centers on US short-term power
  markets