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Weekly Energy Market Update April 15, 2014

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Below is the Direct Energy Business Weekly Energy Market Update video for April 15, 2014. We embedded this video right into the blog post, so you don’t have to leave this page to view it. The written summary is still below too.

The following is a summary of last week’s market activity and the market outlook.

  • Natural gas futures continued their sideways trend, seeing gains for four straight days last week, then, coming off Friday and Monday. The Prompt Month and the 12-month Strip each gained eight cents overall, while calendar strips ‘15, ‘16, and ‘17 gained five, one, and three cents, respectively. The Prompt Month has been range-bound between $4.30 and $4.65 since the end of February.
  • Short-term weather forecasts show one last attempt by winter to hang on, but that is expected to be short-lived, as most of the country returns to normal or above-normal temperatures over the next two weeks.
    • Days 1-5: Warm in the West, normal across the Rockies, but below-normal temperatures covering most of the rest of the U.S. east of the Rockies
    • Days 6-15: Warm expands to cover all of the Southwest and the Plains, while normal temperatures will prevail in the Northwest, Midwest, and the entire eastern half of the US
  • The EIA reported the first injection of the season, an underwhelming 4 Bcf for the week ending April 4, 2014. This was below expectations of 14 Bcf, but higher than last year (25 Bcf), and close to the five-year average (9 Bcf). Current inventory stands at 826 Bcf, which is 849 Bcf (50.7%) below last year and 997 Bcf (54.7%) below the 5-year average.
  • This week’s storage report for the week ended April 11 is expected to be in the neighborhood of 42 Bcf, close to the five-year average of 37 Bcf. The EIA is projecting a record-high addition to storage inventories of about 2,600 Bcf by the end of October, yet the end-of-season storage level is expected to be the lowest seen in the past nine years at approximately 3,422 Bcf.

Other News

Mass DOER Establishes Regulatory Construct for Achieving 1,600 MW of Distributed Solar PV
in the State by 2020

As a result of achieving 400 MW of solar generation in the state by May 2013, which was well before the intended completion in 2017, Massachusetts Governor Deval Patrick tasked the Department of Energy Resources with initiating a new rulemaking in January 2014 for the SREC-II program. This rulemaking establishes a regulatory construct for achieving 1,600 MW of distributed solar photovoltaic (PV) from energy facilities in the state by 2020 — a much more aggressive target. 

Posted: April 15, 2014