Following reports of a slightly less-than-expected 57-Bcf net withdrawal from natural gas storage during the week ended March 2, the front-month April natural gas futures contract snapped three consecutive sessions of gains and closed the session down 2.1 cents at $2.756/MMBtu.
AccuWeather.com said in a March 8 forecast that cold air will persist in the Northeast into the weekend, possibly bringing more snow following two nor'easters in the past week.
Looking at other supply, total U.S. nuclear plant availability ramped up to 91.26% early March 8.
Lower load forecasts pull down East dailies
Next-day markets in the East favored losses Thursday amid mostly lower load forecasts despite cold air persisting across parts of the region.
At next-day markets, the New England Mass hub saw power trade more than $5 lower in the high $20s while PJM West packages shed about $3 with power transacted in the mid-$30s.
On the other hand, day-ahead markets moved higher. Deals at New York Zone G and Zone J added $1 to $2 from Wednesday and averaged $29.94 and $39.82, respectively, while gains of less than a dollar were noted at the Mass hub and New York Zone A with power prices averaging $38.59 and $26.98, respectively.
Demand is projected to ease in the Northeast with New England called to see peaks of 16,030 MW on Thursday and 15,680 MW on Friday, while load in New York should post highs of 19,584 MW on Thursday and 19,285 MW on Friday.
Demand forecasts in the mid-Atlantic are mixed. Load in the PJM Mid-Atlantic region is expected to crest at 36,557 MW on Thursday and 36,810 MW on Friday, while demand in the PJM Western region could top out at 57,104 MW on Thursday and 56,150 MW on Friday.
Western power markets retreat in revised trade
Low weekend demand alongside subdued Friday forecasts fueled a downtick in power prices in the West on Thursday.
Demand in California is poised to hit 27,174 MW on Thursday and 26,656 MW on Friday with load possibly falling over the weekend. Pressured by demand, power prices at South Path-15 retreated more than $5 and ranged in the low $30s.
In the Southwest, packages at Palo Verde eased by less than a dollar and spanned the low to mid-$20s. In the Northwest, dailies at Mid-Columbia changed hands in the mid- to high teens, shedding roughly $3 from the midweek.
Midwest prices mixed on varied load outlooks
Diverging demand forecasts left day-ahead values in the Midwest pointed in different directions Thursday.
Day-ahead deals at PJM Northern Illinois added roughly a dollar from the midweek with power prices averaging $40.09, while trades at PJM AEP-Dayton shed close to a dollar with power posting an average of $35.32.
In terms of demand, load in the PJM AEP region should near 18,241 MW on Thursday and 18,423 MW on Friday, while demand in the PJM ComEd region might peak at 12,705 MW on Thursday and 12,152 MW on Friday.
Texas deals ease on slack load forecasts
Outlooks for lower Friday demand helped pull down most day-ahead markets in Texas on Thursday.
Day-ahead deals at ERCOT Houston and ERCOT South shed roughly a dollar from Wednesday and averaged $22.27 and $21.74, respectively, while DAMs at ERCOT North eased slightly and averaged $21.86. Conversely, trades at ERCOT West added around a dollar with prices averaging $21.49.
The Electric Reliability Council of Texas is forecasting highs of 40,344 MW on Thursday and 38,482 MW on Friday.
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.
- Author
- Stephen Cedric Jumchai
- Theme
- Energy
