Editor's Note:
After moving mostly higher in the week prior, term power markets across the U.S. were pointed in different directions during the week ended May 18 with gains in natural gas futures providing some support.
In natural gas futures, the front-month June contract started the review week May 14 by notching a modest 3.6-cent gain to $2.842/MMBtu as forecasts for warmer weather pressured inventory building. However, changing fundamentals worked to pull down front-month gas to the negative side of the ledger May 15 with the contract easing by 0.6 cent to $2.836/MMBtu. With consensus estimates pointing towards a higher rate or storage building, June gas tumbled May 16 by 2.1 cents to $2.815/MMBtu.
Managing to withstand downward pressures from reports of a better-than-expected 106-Bcf net injection during the week ended May 11, the June gas contract closed the May 17 session with a 4.4-cent gain to $2.859/MMBtu. The May 18 session, on the other hand, saw front-month gas prices close the workweek with a 1.2-cent loss to $2.847/MMBtu on short covering ahead of the weekend. Overall, the front-month gas contract still managed to notch a 0.5-cent gain during the review week spanning May 14-18.
The scant increase in fueling costs implied by the small gain in gas futures did little to support some term markets during the review week.

Owing to outlooks for a tight supply-demand balance and warmer weather, ERCOT North posted the biggest gains of the period with power prices pegged at $53.85 on May 14 and $72.22 on May 18, up 34% week on week.
In the West, flat but predominantly higher moves prevailed. Palo Verde June packages were quoted at $35.99 on May 14 and $37.50 on May 18, adding 4% for the week. Mid-Columbia prompt-month values were assessed at $15.75 on May 14 and $16.15 on May 18, up 3% for the period. A scant 2-cent gain was notched at South Path-15, where June power value was seen at $34.47 on May 14 and $34.49 on May 18.
Conversely, values in the East took a few steps back. New York Zone G June was pegged at $33.32 on May 14 and $32.20 on May 18, around 3% lower for the period. A 1% decrease was noted at the New England Mass Hub, where prompt-month power was quoted at $29.44 on May 14 and $29.26 on May 18. PJM West June shed roughly 16 cents during the week and was noted at $34.85 on May 14 and $34.69 on May 18.
Prices in the Midwest also favored losses. MISO Indiana June was valued at $35.17 on May 14 and $34.10 on May 18, down 3% week on week. PJM Northern Illinois shed 2% over the period with June power quoted at $31.26 on May 14 and $30.75 on May 18. PJM AEP-Dayton posted an 11-cent loss with June power assessed at $35.85 on May 14 and $35.74 on May 18.


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.
