Houston — A winter storm across the lower Atlantic that dumped nearly three feet of snow in some areas of the Carolinas caused widespread power outages, but the impact on other commodities was limited.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
"Despite the severity of this weather event, there was little impact on natural gas fundamentals and prices compared to some of the swings in demand and price we've seen this winter," said S&P Global Platts Analytics' Tyler Jubert.
Natural gas demand for home heating spiked amid below-normal temperatures. However, that demand lift was partially offset by lower pull for power generation, with load down almost 10% from forecasted levels.
Low temperatures are expected to persist for the next few days, but power outages continue to fall with utilities deploying restoration crews.
Here are the key takeaways across commodities:
**Power outages reached 750,000 across the Carolinas and Virginia, but all but about 100,000 were restored by Monday afternoon.
**In the Duke Energy Carolinas territory, loads were about 2,000 MW below the forecast of about 25,000 MW.
**Saturday and Sunday's average real-time on-peak prices for the Dominion Hub were higher than last Saturday and Sunday's comparable numbers -- by about $1 and about $8, respectively, to around $40/MWh.
**Gas deliveries to LDCs in the storm path spiked over the weekend as demand for home heating ramped up.
**Sample residential-commercial demand in North Carolina has averaged 15.7 Bcf/d since Saturday, up about 5 Bcf/d from the prior seven-day average, according to Platts Analytics.
**Sample natural gas demand for power generation fell to about 12.8 Bcf/d Monday. Power outages reduced demand for power generation by about 1.5 Bcf/d, according to Platts Analytics.
**At Transco Zone 5 in North Carolina, gas prices were down Monday about 14 cents to 15 cents/MMBtu as the storm's demand impact continued to wane. All three Transco zone 5 hubs were poised to settle at close to $5.20/MMBtu on Monday, according to preliminary settlement data from S&P Global Platts.
**Storms could temporarily cut demand for gasoline, diesel and jet fuel.
**Prompt ULSD fell 4 cents to $1.8461/gal while RBOB fell 6 cents to $1.4267/gal Monday. Traders attributed the declines to macro concerns, not the storm.
-- Staff, email@example.com
-- Edited by Joe Fisher, firstname.lastname@example.org