Weekly Energy Market Updates by Region




Issue week: June 24th, 2022  (Wk 25)





WEST  Term prices are lower overall as rising natural gas prices in SoCal Citygate have only partially offset falling prices in NYMEX. In the spot market, Day Ahead prices in Mid-C have also been pretty soft as snowmelt runoff continues to boost hydro production. Indeed, the ATC average for this Friday and Saturday is a mere $13.11/MWh, which incorporates an on-peak price of $18.70/MWh and a paltry off-peak figure of $1.93/MWh.

ERCOT  Both temperatures and loads have broken records this week, yet real-time prices, bolstered by healthy output from renewables, have been held in check for the most part (although they remain much higher than a year ago). The 7x24 real-time average is between $50/MWh and $60/MWh in all load zones except, again, Houston, where the average is around $90/MWh as ongoing local plant issues and congestion constraints preventing renewable generation predominantly in the West Load Zone from helping out frustrate efforts to satisfy the strong loads. Spot prices are likely to remain elevated at least for the next few days as more record peak loads of 77,000-78,000 MW are expected before the state begins to cool down by a few degrees early next week. In the term market, forward prices have continued their retreat from recent highs as natural gas prices continue to fall. Although strips for 2025 and beyond are relatively unchanged from last week, 7x24 pricing for the prompt 12-month strip has dropped by approximately $7.00/MWh.

EAST A strong heatwave across the Midwest this week drove hourly demand in MISO to its YTD high and the second-highest demand ever. Consequently, peak index prices have topped $100/MWh in MISO and PJM while staying around $60-$80/MWh in the Northeast.


The EIA reported Thursday morning that, for the week ending June 17, U.S. inventories increased by 74 Bcf, matching market expectations. Total stockpiles now stand at 2,169 Bcf, down by 12.3% from a year ago and 13.2% below the five year average for the same week.

The NYMEX futures prompt month of July, which expires next Tuesday, closed today at $6.239/MMBtu, $0.619/MMBtu below yesterday’s sign-off and $1.225/MMBtu under last Thursday’s close. For the second consecutive week, it has plunged by 16% from the previous week.







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