Energy Update - 06/27/2022 (Plain Text Version)
Prices Finally Retreat
Week in review for June 19-25, 2022
Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday June 17, 2022, was 2,169 Bcf. This was an increase of 74 Bcf from the previous week, a higher injection than expected, contributing to a decrease in the front end of the curve Thursday. Inventories are still very low, currently 305 Bcf lower than last year at this same time, and 331 Bcf below the 5-year average.
Even before the bearish storage report, markets were down sharply amid increasing recession fears and news that Freeport LNG export facility, representing 17% of U.S. export capacity, would likely not be back to fully operational until late 2022. The prompt 12-month NYMEX natural gas strip (Jul22-Jun23) was down 14.2% for the week, now off 28.5% from its peak. The 12-month PJM STD 7x24 strip was down 18% for the week, 29% below its peak.