On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, January 1, 2021 was 3,330 BCF. This was a decrease of 130 BCF from the previous week. Inventories are now 138 BCF higher than last year at this time, 201 BCF above the 5-year average.
Energy markets were up this week, in part due to an increased possibility of a “polar vortex,” more specifically changes in the polar vortex, which could portend severe cold weather especially in the mid-western and eastern U.S. For now, forecasts for the next two-weeks remain near normal to warmer-than-normal for much of that area, but there is greater than usual probability for much colder than normal temperatures beginning toward the end of January. NYMEX natural gas 12-month strip (Feb21-Jan22) was up 5.1%. The PJM Western Hub 12-month strip was up 2.1%.