Spot gas, power prices continue to be cheap

Spot power and natural gas prices in organized markets and published by the Energy Information Administration (EIA) continue to be cheap.

The New York Mercantile Exchange (Nymex) prices for December delivery of natural gas was listed as $2.26/mmBtu on Friday Nov. 13. That’s almost $2 ($1.98/mmBtu) less expensive than it was at last year this time, according to the EIA data.

In addition, spot gas prices on Nov. 13 were actually less than $2/mmBtu in five of the 10 organized markets.

Spot power prices were pretty modest also. Northern California had the highest price of the 10 regions at $31.84/MWh. But nine of the 10 regions showed a price drop from the prior day.

In addition, no region reported a spark spread above $20/MWh.

EIA data also reveals that natural gas inventories are up. For the week ending Oct. 30, domestic national gas inventories amounted to 3,929 Bcf. That was an increase of 52 Bcf from one week earlier and an increase of 371 Bcf from one year earlier, according to EIA.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.