Term markets across the country tumbled during the week ended Feb. 2 with losses fueled by weakness in gas futures and the transition of prompt-month products from February to March.
The review week for natural gas futures kicked off Jan. 29 with the front-month February contract rolling off the board with a 12.6-cent gain to settle at $3.631/MMBtu, while the March contract settled 0.8 cent higher at $3.167/MMBtu. The following day saw March gas debut as the lead contract with a modest gain of 2.8 cents to $3.195/MMBtu, boosted by near term weather forecasts.
However, on Jan. 31, weakening fundamentals along with sentiment of overbought conditions sent front-month gas tumbling by 20.0 cents to close below the $3/MMBtu mark at $2.995/MMBtu. Losses continued for March gas on Feb. 1 with the contract falling by 13.9 cents to $2.856/MMBtu, following reports of a less-than-expected 99-Bcf net withdrawal during the week ended Jan. 26. A modest loss capped off the review week Feb. 2 with the contract shedding 1.0 cent to $2.846/MMBtu. With the transition from February to March gas, the front-month contract fell by 78.5 cents during the review week.

The significant drop in gas futures alongside the transition of prompt-month products from February to March led to sizable losses across wholesale electricity markets.
Posting the largest loss of the session were term deals at the New England Mass hub, which opened for February at $109.45 on Jan. 29, switched over to March at $54.50 on Feb. 1 and fell to $53.75 on Feb. 2, down about $55 over the week.
Other markets in the East turned lower as well. New York Zone G traded power for February at $87.40 on Jan. 29, then for March at $42.70 on Feb. 1 and $42.39 on Feb. 2, down by roughly $45 for the period. PJM West prompt-month packages were exchanged for February at $65.50 on Jan. 29, March traded at $37.66 on Feb. 1 and $38.10 on Feb. 2, posting weekly losses atop $27.
Markets in the central U.S. also embraced the downside. PJM AEP-Dayton pegged power for February at $53.53 on Jan. 29, then for March at $33.33 on Feb. 1 and $34.12 on Feb. 2, losing about $19 for the week. Prompt-month power at PJM Northern Illinois was priced for February at $45.33 on Jan. 29, then for March at $28.81 on Feb. 1 and $29.23 on Feb. 2, around $16 lower for the period. MISO Indiana quoted prompt-month deals for February at $41.70 on Jan. 29, then for March at $33.28 on Feb. 1 and $33.82 on Feb. 2, shedding slightly less than $8 for the week.
In Texas, term transactions for February were assessed at $43.98 on Jan. 29, then switched over to March at $27.56 on Feb. 1 and $27.57 on Feb. 2, around $16 lower week over week.
In the West, losses also defined power trading activity for the week. South Path-15 packages opened for February at $37.29 on Jan. 29 then transitioned to March at $26.08 on Feb. 1 and closed at $25.75 on Feb. 2, dropping $11.54 for the week. Prompt-month power at Mid-Columbia changed hands for February at $19.75 on Jan. 29 then for March at $14.00 on Feb. 1 and $15.23 on Feb. 2, $4.52 lower for the period. Palo Verde traded prompt-month power down $4.16 during the week with deals done for February at $25.50 on Jan. 29, then March at $21.20 on Feb. 1 and $21.34 on Feb. 2.


Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices, as well as forwards and futures, visit our Commodities pages.
