The marketplace focused on a surprise report this week which placed downward pressure on both natural gas and electricity prices. For this seven-day report period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) fell 6.5% and the 12-month average price for peak power on the PJM fell 4%.
This week's notable news story focused on the natural gas storage position. The Energy Information Administration (EIA) reported a surprise injection of 2 Bcf into the natural gas storage fields. We have only seen two gas injections during the month of December. The other two December injections were recorded in 1998 and 2005.
This rare injection was due to the fact that most of the country experienced warmer-than-normal temperatures during the report week. However, the 6-10 day weather report calls for the return of normal temperatures to most of the country. Stay tuned. Winter does not even officially start until next Friday, December 21, 2012.