Energy Update - 07/27/2022 (Plain Text Version)
Prices Continue July Bounce
Week in review for July 17-23, 2022
Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday July 15, 2022, was 2,401 Bcf. This was an increase of 32 Bcf from the previous week, a lower injection than expected which contributed to a significant price rise for the week, despite retreating somewhat Thursday afternoon. Inventories are still very low, now 270 Bcf lower this year, than it was at the same time last year, and 328 Bcf below the 5-year average.
Buoyed by hot weather during the week and forecasts through August, markets were up this week, continuing the July bounce up from 6/30/2022 levels that were the lowest since April. The prompt 12-month NYMEX natural gas strip (Aug22-Jul23) was up 15.0% for the week. The spark spread (power price vs natural gas price) decreased significantly as the 12-month PJM STD 7x24 strip was up only 4.5%.