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Key Market Insights

Brent gained $0.32 on Friday before settling at $ 45.54. WTI gained $0.27, settling at $43.01.

Crude closed largely unchanged on Friday, although prices were supported by weakness in the US dollar. The USD fell approximately 0.3% against a basket of currencies driven by lower than expected preliminary factory and services data. Morning gains were partially reversed after a Baker Hughes report showed an 11 rig addition to US crude production. The build out is the largest in three weeks as ramping production in the US, Nigeria and Libya continues to undermine OPEC led efforts to remove the global oil supply glut.

Electricity Price Trends

Price Trends At Key Trading Points ($/MWH)

price trends

The end of June is set to go out with a whimper with below normal temperatures blanketing much of the East for the first half of this week. All major zones in PJM cleared mid $20s for the on-peak today while the July contract has rallied with natural gas higher today along with the threat of slightly warmer than normal weather in the 11-15 day period. Term markets are slightly down to roughly unchanged week on week as power largely followed term natural gas to an uneventful week. Weak cash pricing will likely continue to put more pressure on the Jul17-Aug17 power contracts in the East as the weather fear premium starts to subside.

12 month strip price

strip price

SP15 and Mid-Continent cash were well over the previous week’s settlements as the first heat wave of the summer made its way into the region. Loads were reported as setting all-time highs in the Southwest and prices reflected the demand. Averages for the week had SP15 settling $66.58 with a massive $139.26 on Wednesday. Mid-Continent still has plenty of water and limited transmission gained from the previous week but in no way saw the same high prices averaging only $18.84. The heat was only part of the story as a PV unit tripped and took the rest of the week to recover. All nukes in the west are either full load or moving in that direction currently. Looking forward heat looks to abate a bit and loads should follow. Term markets were following strong cash and were generally supported.

Natural Gas Price Trends

Northeast spot natural gas prices ($/MMBTU)

Natural gas spot

NYMEX HH 5-year futures

Natural gas spot

 

All information is pulled from Macquarie and Crius internal databases as of June 2017. All materials published on this document are based on real-time and/or historical data, and are for informational purposes only. Crius Energy makes no representations or warranties, express or implied, as to the quality, accuracy, completeness, or reliability of the information provided here. Crius Energy accepts no responsibility for any loss, damage, costs or expense (whether direct or indirect) incurred as a result of any error, omission or misrepresentation of any information on this page. This content includes predictions, estimates, or other information that might be considered forward-looking. Any forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements.