December 16th 2019

YOUR WEEKLY JOLT

Brace yourselves! A winter storm slamming the Midwest is causing real problems on roadways across Kansas, Missouri, and Nebraska. Guess what? We’re next. The wintry weather will likely create hazardous conditions throughout the Northeast tonight and tomorrow, creating travel delays, school cancellations, and a litany of other seasonally inspired side effects.

Stay safe and warm, and enjoy this week’s Jolt.

Heating Oil

  • Prompt-month heating oil futures increased 1.76% for the week ending Friday, 12/13, as prices rose $0.0343 per gallon.
  • On the New York Mercantile Exchange, crude futures for delivery in January closed at $60.07 per barrel on Friday, 12/13, up 1.20% for the day, and up 1.47% for the week.

Why so crude? Crude oil prices were up last week and continued to rise on Monday, trading around $60 a barrel. Prices hit a three-month high on Friday, breaching the $60 per barrel mark after the Trump administration announced that a trade deal with China had been reached. Details on the deal were scant, though the U.S. said it would not pursue a new round of tariffs, and China indicated that it would increase their agricultural purchases. Prices were kept in check by a surprise increase in crude stockpiles and large builds in gasoline inventories and distillates stocks. The Baker Hughes oil rig count rose last week, going from 663 to 667 and indicating increased domestic production.


Natural Gas

  • Prompt-month natural gas futures decreased $0.038 for the week ending Friday, 12/13, to settle at $2.296/Dth.
  • Overall supply decreased by 0.2 Bcf from the previous week. Total demand increased by 2.3 Bcf.
  • Natural gas exports in September 2019 were 394,767 million cubic feet, compared with 301,746 million cubic feet in September 2018. This is a 30.83% increase.
  • Net withdrawals from storage totaled 73 Bcf, compared with the 5 year average net withdrawal of 68 Bcf and last year’s net withdrawal of 75 Bcf during the same week.
  • Working gas stocks total 3,518 Bcf, coming in 14 Bcf less than the five-year average and 593 Bcf more than last year at this time.

A Bounce in Natural Gas! Natural gas has plummeted more than 40% year-over-year, with the natural gas ETF (UNG) down even more due to contango effect. – Seeking Alpha


Electricity

  • Average peak prices in NYC decreased last week, falling $2.21 to $25.67 per MWh.
  • Average peak prices in Central NY’s Zone C decreased, falling $6.26 to $18.49 per MWh.
  • Average peak prices in New Jersey’s PSE&G increased, rising $2.66 to $26.15 per MWh.
  • Average peak prices in New Jersey’s ACE increased, rising $2.53 to $25.71 per MWh.
  • Average peak prices in Pennsylvania’s PPL decreased, falling $0.41 to $24.62 per MWh.
  • Average peak prices in Maryland’s BGE increased, rising $3.66 to $32.71 per MWh.
  • Calendar 2020 prices in NYC decreased $0.80 per MWh, and Zone C prices decreased $0.43 per MWh.
  • Calendar 2020 prices in PSE&G decreased $0.55 per MWh, and ACE prices decreased $0.56 per MWh.
  • Calendar 2020 prices in PPL decreased $0.54 per MWh.

Healing Power! Six-year-old Alexis Truax has a rare gene mutation. Engineering students at Grand Valley State University in Michigan built her a custom electric swing. – Michigan Live


Technology

We Have A New Website! We’re excited to announce the launch of our new Marathon Energy digital platform. In an effort to more accurately represent the offerings of our full service energy company—one that is rapidly expanding into other markets and commodities, we revamped our website. – Check it out


Marathon Cares

Marathon Energy’s own Diana Kreppelt was a proud participant at The Valor Clinic Foundation’s monthly event on November 23rd. The clinic sets up a mobile closet and soup kitchen to help those in need in the Lehigh Valley area. Volunteers like Diana are paired with individuals, to help collect items they need for the month. Thank you to Diana and all of the volunteers who support this great cause!

And remember, if you or your company are involved in helping your community, please let us know by emailing us here. After all, Marathon Cares.