Come and Get It! The Beacon: 06/22/2020

The Headline: Energy Prices are down a little, but may get pushed up by warmer weather and supply scarcity this week.

Last week, the forward energy market dropped slightly across the majority of the curve, with the front end down 4-6 cents and the bulk of the curve down less than 3 cents.   The strips are down slightly, with none varying by more than 4 cents.   The 12-month strip is still cheapest, with all of the annual strips clustered 4.5 to 9.3 cents above it.  All of the strips continue to hold under $2.50.   North American drilling rigs in the field are down for a 13th straight week, with the pace of the decline picking back up from the last two weeks --17 rigs down this week, with the US rig count down 13 and the Canadian count down 5.   That marks a 684-rig decrease in the last 13 weeks - a 70.8% decrease from the pre-pandemic/oil price collapse numbers.   The EIA reported a natural gas storage injection of 85 bcf -- in line with industry expectations and the 5-year average of 87 bcf, but below last year's build of 111 bcf.  Storage levels are stacking up well -- holding steady against the 5-year max, and 16.9% above the climbing 5-year average.    This week's weather map is showing expectations of warmer-than-normal temperatures on the coasts and in the Rockies, with the center of the country expected to see slightly cooler-than-normal temps.    There is no tropical weather activity expected in the Gulf next week.  Current price levels continue to be attractive, especially for 2022-2025. 

Click HERE to get your free copy of the Beacon, and contact Lighthouse at 937-709-0098 x701 or Chris.Smith@LighthousePowerPartners.com for help in lowering your electricity and natural gas bills.