The Bear’s Den is Suddenly a Crowded Place
January 02, 2019
Electricity spot prices and natural gas futures have moved into bear territory.
NEPOOL electricity entered a “downtrend” on 12/21 at $33.35/MWh. Prices have fallen steadily after reaching more than $82.00/MWh on 12/12.
New York City electricity joined its northern neighbor a few days later on 12/24 when prices hit $33.67/MWh, a less precipitous fall from nearly $59.00MWh on 12/6.
Mid Atlantic market became a “downtrend” 12/21 and Midwest did also on 12/24. Both markets are pricing in the mid $20s per MWh as of Monday, Dec 31.
Houston was the late mover into the bear’s den, joining on 12/27 when prices dipped below $30.00/MWh.
NYMEX natural prices, which were within an earshot of $5.00/mmbtu in mid November, are now trading below $3.00/mmbtu to start the new year.