WEST As natural gas prices continue to decline, not only because of overproduction but also because of forecasts of above-average temperatures over the next few weeks that have decreased heating demand, term prices have followed suit. The bearish sentiment has driven the front of the curve further down.
ERCOT Term prices are down by a nickel to a dime out the curve as the fall in natural gas prices has offset the increase in term heat rates. Moderate demand is keeping a lid on real-time prices.
EAST DA prices have increased from last week after back-to-back storms blanketed the Northeast over the weekend. As the price of natural gas delivered to southeastern New York increased during the cold spell, local units became uneconomical and were priced out of the supply stack, increasing east-west congestion and pro-ducing a basis spread of $11/MWh for NYC. Because of a constraint on the Dunwoodie-Shore Rd. Line, RT prices are approximately $8/MWh over DA. With warmer weather forecast for the rest of Janu-ary, prices are expected to return to normal.