Thursday, September 27, 2007

NEI's Energy Markets Report - September 17 - 21, 2007

Here's a summary of what went on in the energy markets last week:

Electricity peak prices experienced modest gains at all the hubs except for SP 15 and Palo Verde. SP 15 and Palo Verde decreased by more than $10/MWh last week as temperatures and demand receded (see pages 1 and 3).

Gas prices at the Henry Hub rose from $5.85/MMBtu to $6.22/MMBtu. Storage inventories are currently 8.2 percent above the 5-year average, and about 1 percent below last year’s storage level at this time according to EIA (see pages 1 and 3). Gas futures at the Henry Hub for October 2007 rose to $6.30/MMBtu (see page 2).

Total U.S. electricity production for the week ended September 15 fell 7.8 percent from the previous week. The weekly total was 5.4 percent higher than the corresponding week in 2006 (see page 1).

Nitrogen oxide allowance prices last week were 55 percent lower than the same one-week period for 2006. The average NOx price for June - August 2007 was $632.11/ton, 62 percent lower than June - August 2006. Average NOx prices for the three summer months in 2006 were $1,662.12/ton (see pages 1 and 3).

Cushing OK WTI oil prices increased $2.98 to $78.95/barrel. Crude oil futures also rose to $81.83/barrel for October. According to EIA, the Federal Reserve’s decision to lower interest rates on September 18 could be part of the reason crude oil prices are increasing. The EIA speculates that lower interest rates could cause crude oil prices to increase past the $80/barrel threshold (see pages 1, 2 and 3).
For the report click here. It is also located on NEI's Financial Center webpage.

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