The Energy Buyer's Guide | 07.15.2024
Natural gas flat as spot power prices jump higher in the East
We are excited to publish the inaugural edition of The Energy Buyer’s Guide. This is our flagship publication and will be produced on a weekly basis. The document covers the happenings of the previous week in the U.S. natural gas and power markets on both a national and a regional scale.
- Natural gas futures were little changed after a week of mixed trade amid the first major hurricane of the season and shifting near-term temperature forecasts.
- Real-time power prices in PJM and the Northeast pushed significantly higher due to an uptick in air conditioning load across the eastern third of the U.S.
- The Freeport LNG export terminal was offline throughout the week due to a precautionary shut down ahead of Hurricane Beryl and subsequent storm-related power outages. (
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- Temperature forecasts beyond the immediate term show a break in the heat for key population centers in the Midwest and East, which should limit power generation demand during the second half of the month. (Link)
Natural gas futures pricing on the front of the NYMEX forward curve finished virtually flat after a back-and-forth week of trading amid mixed fundamental market signals. The prompt-month August 2024 contract ended the week at $2.327 per MMBtu, up just under $0.01 per MMBtu from the previous Friday’s close. Deferred seasonal strips were modestly lower on the week, with the Winter 24-25 strip losing $0.03 per MMBtu and Summer 2025 down by about $0.04 per MMBtu.