Here's a summary of what went on in the energy markets last week:
Electricity peak prices decreased $2-11/MWh at all hubs except for PJM West, which increased due to below normal temperatures. Mild weather contributed to the $7-10/MWh decline at the Palo Verde and SP 15 hubs (Platts, see pages 1 and 3).For the report click here. It is also located on NEI's Financial Center webpage.
Gas prices at the Henry Hub rose from $6.90/MMBtu to $7.07/MMBtu. This is the first time in 21 weeks (week of June 25) the average weekly price of gas exceeded $7/MMBtu. NYMEX futures and EIA forecasts indicate gas prices will hover around $8/MMBtu for December 2007 (see pages 1 and 3).
Estimated nuclear plant availability rose to 87 percent last week. Four reactors finished refueling outages and four reactors finished maintenance outages (see pages 2 and 4).
Uranium spot prices were $93/lb U3O8 according to TradeTech and UxConsulting. Prices are expected to remain at or around this level over the next month. After summer, the late November to end of December time period is the slowest season of the year with regard to historical spot volumes. It is also the next weakest time period with respect to upward uranium price movements (UxC, see pages 1 and 3).
Crude oil prices continued to increase to $95.81/barrel. Crude oil futures were trading around $86/barrel six months ahead and almost $90/barrel for November 2008. According to the World Energy Outlook 2007, world oil resources are considered to be adequate to meet a 37% increase in demand by 2030. This is based on the assumption crude oil prices will fall back to around $60/barrel (in 2006 dollars) by 2015 (IEA, see pages 1, 2 and 3).
Comments