- Prompt-month heating oil futures increased 0.80% for the week ending Friday, 12/7, as prices rose $0.0147 per gallon.
- On the New York Mercantile Exchange, crude futures for delivery in January closed at $52.61 per barrel on Friday, 12/7, up 1.64% for the day, and up 3.30% for the week.
- Crude oil prices increased last week but saw most of their gains disappear on Monday, as prices fell back down to $51 per barrel. The latest meeting between OPEC and non-member allies led by Russia stoked some optimism in the market as they agreed to a production cut of 1.2 million barrels per day over the first 6 months of 2019 in an effort to prop up prices. The domestic oil rig count also fell by 10 to 877 last week, indicating decreasing production in the United States. Unfortunately, the production cuts did not have a lasting positive effect on the market as many investors questioned their true impact. This skepticism showed to start the week as crude prices slipped 3%.
- Prompt-month natural gas futures decreased $0.124 for the week ending Friday, 12/7, to settle at $4.488/Dth.
- Overall supply increased 0.2 Bcf from the previous week. Total demand decreased, falling by 1.8 Bcf.
- Natural gas exports in September 2018 were 301,869 million cubic feet, compared with 250,280 million cubic feet in September 2017. This is a 20.61% increase.
- Net withdrawals from storage totaled 63 Bcf, compared with the 5 year average net withdrawals of 58 Bcf and last year’s net withdrawal of 3 Bcf during the same week.
- Net withdrawals from storage were higher than expectations with a median forecast of 61 Bcf injected. Working gas stocks total 2,991 Bcf, coming in 725 Bcf less than the five-year average and 704 Bcf less than last year at this time.
- Average peak prices in NYC increased last week, moving up $6.80 to $50.63 per MWh. Peak prices hit a high of $79.86 between 5-6 PM last Thursday, 12/6, in NYC; Average peak prices in PSE&G also increased, rising $4.02 to average $41.81 per MWh, and topping out at $67.40 on Tuesday, 12/4, between 5-6 PM.
- Around-the-clock prices for the balance of 2019 increased $1.56 per MWh for NYC and increased $0.13 per MWh in PSE&G. Calendar 2020 prices in NYC increased $0.28 per MWh, and PSEG prices increased $0.31 per MWh.
- Temperatures averaged 2.43°F below historical figures this past week (ending 12/8), and came in 0.64°F above forecasted values. Highs for the week are expected to average around 42°F with lows averaging 34°F. Temperatures are forecasted to be 0.64°F cooler than seasonal averages, and 0.57°F below last week’s average.
- Temperatures will remain cold this week and come in just below seasonal averages. Dry weather is expected for the majority of the week with some periods of rain possible on Saturday. Short term forecasts show above-average temperatures in the northern regions of the country with pockets of colder weather in the Southeast and Rockies. Longer term forecast models are predicting above-average to average temperatures in the western half of the U.S. with below-average temperatures in the East.