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In This Issue

Natural Gas Futures Sink to 17-year Low

Connecticut, Massachusetts, and Rhode Island Rreceive Strong Response to Clean Energy RFP

Natural Gas and Oil Market Update

EIA - Weekly Natural Gas Storage Report

NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price

Tables

NOAA 6 to 10 Day Outlook
weatherweather
Color indicates the probability of forecasted temperatures being above or below a historical average for the period.

 

Market Overviews

Natural Gas Futures Sink to 17-year Low

Market Watch | March 3, 2016

Natural-gas futures dropped to their lowest level in 17 years on Wednesday with warmer-than-normal weather expected to contribute to a below-average fall in weekly U.S. supplies of the heating fuel.

April natural gas fell 6.4 cents, or 3.7%, to settle at $1.678 per million British thermal units. That was the lowest settlement for a most-active contract since Feb. 26, 1999, according to data from Dow Jones. The loss bucked the overall uptrend for energy prices Wednesday, when oil logged a third straight session climb.

Prices for the fuel have been on a relatively steady decline all year as supplies levels continue to run significantly higher than the five-year average despite the plunge in prices. Year to date, futures prices have lost more than 28%.

In early February, an analyst predicted that natural-gas prices may drop to $1.50 as winter heating demand for natural gas drops off and demand for the fuel has to yet to climb for the summer cooling-demand season.

On Wednesday, prices broke down to a 17-year low “as there just isn’t enough late winter heating demand to keep a floor under prices,” said Tim Evans, energy futures specialist at Citi Futures and OTC Clearing, in a note. He said that Wednesday’s six- to 10-day and 11- to 15-day forecasts feature warmer-than-normal temperatures east of the Rocky Mountains.

The market consensus shows a forecast for a decline near 40 billion cubic feet for the week ended Feb. 26—well below the 137 billion cubic foot five-year average decline for that week, he said.

Looking ahead, however, analysts at Morgan Stanley appeared upbeat.

“The next three months may be challenging as seasonal demand wanes, but we believe this will be a buying opportunity,” the analysts said in a note Wednesday.

“An imminent slowdown and ample demand should return the market to balance by the end of this year,” they said.

Morgan Stanley sees 2017 natural-gas prices averaging $3.20 per million Btus.

Read More:
http://www.marketwatch.com/story/natural-gas-futures-sink-to-17-year-low-2016-03-02

Connecticut, Massachusetts, and Rhode Island Rreceive Strong Response to Clean Energy RFP

ISO Newswire | March 3, 2016

Connecticut, Massachusetts, and Rhode Island received more than 30 project proposals from bidders responding to the three-state request for proposals (RFP) for clean energy and transmission projects issued on November 12, 2015. Public versions of the bids submitted by the January 28, 2016 bid submission deadline have been posted to the Clean Energy RFP website.

Developers were invited to submit multiple bids reflecting different project configurations in three different categories:

  • Any combination of qualified clean energy and renewable energy credits via a power purchase agreement
  • Any combination of qualified clean energy and renewable energy credits via a power purchase agreement with a transmission project to deliver the clean energy
  • Qualified clean energy via a transmission project containing a clean energy delivery commitment (with no power purchase agreement)

For the three participating states, qualified clean energy generally includes “class I” or “new” renewable energy and large-scale hydropower. Bidders offered projects ranging from 20 MW to more than 400 MW of new solar, wind, fuel cell, hydro, and energy storage resources to be located in Connecticut, Maine, New Hampshire, Vermont, New York, and eastern Canada. Multiple project proposals included plans to access clean energy resources through new high-voltage transmission lines.

The bids will now undergo an evaluation based on their viability, bid price, and other project details. The evaluation process will take several months, with a final selection of projects expected by July 2016. Any contracts executed by the states’ electric distribution companies must be reviewed and approved by the state public utility commissions (anticipated by the end of the year).

The three-state RFP stems from the New England governors’ efforts to work together on challenges relating to energy infrastructure (read the ISO Newswire articles, New England Governors announce proposal to expand regional energy infrastructure and New England’s governors release six-state action plan to address energy infrastructure needs). The purpose of the RFP is to identify projects that will advance the clean energy goals of the three participating states. The soliciting parties in the three states are acting jointly to open up the possibility of procuring large-scale projects that no one state could procure on its own.

Read More:
http://isonewswire.com/updates/2016/3/2/connecticut-massachusetts-and-rhode-island-receive-strong-re.html


Natural Gas and Oil Market Update

Arrow

Oil Turns Positive After Falling on Gloom Over Glut

CNBC | March 3, 2016

U.S. crude reversed losses and traded roughly flat Thursday, as ballooning U.S. crude inventories and a lack of any fresh action from the world's largest producer to temper supply snuffed out bullish sentiment that has built this week.

Brent futures were down 13 cents to $36.80 a barrel, while U.S. crude futures was up 3 cents to $34.53.

  Arrow

Natural Gas Prices Pare Losses as U.S. Supplies Decline by 48 Billion Cubic Feet

Market Watch | March 3, 2016

Natural-gas futures pared some earlier losses on Thursday after the U.S. Energy Information Administration reported that supplies of the commodity declined by 48 billion cubic feet for the week ended Feb. 26. That was more than than the fall of between 37 billion and 41 billion cubic feet expected by analysts polled by Platts. Total stocks now stand at 2.536 trillion cubic feet, up 794 billion cubic feet from a year ago and 666 billion cubic feet above the five-year average, the government said. April natural gas was at $1.659 per million British thermal units, down 1.9 cents, or 1.1%. Prices traded $1.648 before the supply data.

EIA - Weekly Natural Gas Storage Report

EIA - Weekly Natural Gas Storage Report

Summary
Working gas in storage was 2,536 Bcf as of Friday, February 26, 2016, according to EIA estimates. This represents a net decline of 48 Bcf from the previous week. Stocks were 794 Bcf higher than last year at this time and 666 Bcf above the five-year average of 1,870 Bcf. At 2,536 Bcf, total working gas is above the five-year historical range.

NYMEX Natural Gas Week-to-Week Price Change NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price ($ per mmBtu)

NYMEX Natural Gas Week-to-Week Price Change - Five Yearly Snapshot

Disclaimer: The information contained in these reports is gathered from public and/or internal sources and is presented solely for the convenience of our customers and Newsletter Subscribers. Patriot Energy Group makes no representation or warranty, express or implied as to the accuracy or completeness of the information set forth in this newsletter, and Patriot Energy shall not have any liability to any person or entity resulting from use of this information in any way.
 
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