Energy Market Update: June 1, 2016

What is driving the recent increase in natural gas prices?

In the latest Energy Market Update, Tim Bigler — Direct Energy Business Energy Advisor — overviews regional natural gas and electricity prices and discusses new developments in the PJM region. 

Watch the video below to learn more. 

Natural Gas and Electricity Prices

There has been a recent uptick in natural gas prices due to a variety of factors, including: higher demand for exports to Mexico, LNG exports leaving Sabine Pass, decreased production in the U.S. and increased demand from the power and industrial sectors. Power prices outside of California are either stable, range-bound or down. 

PJM Region Electricity Markets

On June 1, PJM's new planning year begins, which means power plants that have bid in for this planning year will begin running. Additionally, PJM's capacity auction prices for 2019/2020 dropped 39 percent from last year's clearing price.