Local and national leaders are excited about the Biden-Harris administration's new funding to invigorate American energy industries. Its goal is to strengthen domestic energy independence, create good-paying construction and manufacturing jobs, and lower costs for Americans.

U.S. Secretary of Energy Jennifer M. Granholm

Trends in the Energy Market

• October injections into underground storage have been moderate. The 10/27 EIA report showed an injection of 52 Bcf. Inventories are 3,394 Bcf, 4% less than the same period last year and 5.5% less than the 5-year average.
  
  
• Accordingly, there continues to be some downward pressure on the NYMEX futures. As October comes to its end, natural gas is currently trading in the $5.20 - $6.00 / MMBtu range through the coming winter, with April 2023 futures and beyond showing a significant drop.
  
  
• A mild and seasonal pattern will prevail in the coming 7-14 days in the Midwest and East. In the northwest, colder weather is forecast for early November expected to lead to above-normal heating demand.
  
  
• The coming winter is expected to follow a La Nina pattern for the third consecutive year. Expect some cold in early winter, followed by a warmer December, and colder than average temperatures in January and February.
  
  
• Natural gas production remained flat in October, holding at 98.8 Bcf per day.
  
  
• LNG exports and shipments worldwide are strong. Prices everywhere, including Europe, are closing down.
  
  
• Prompt month crude oil futures have fallen somewhat and are currently trading in the $80 - $85/bbl range. China's near-term economic outlook continues to weigh on the crude market as well as on the recessionary environment in the EU.
  
  
• The economy seems to be giving off mixed signals. GDP, employment, and some other indicators are up, but home sales have continued to fall and stagnate.
  
  
• Forward electricity prices have fallen fairly dramatically across all ISOs, especially for 2023. Power forwards seem to be following natural gas fairly closely. Many experts are expecting the market to turn more bullish as winter strengthens.