Thursday, March 06, 2008

NEI's Energy Markets Report - February 25-February 29, 2008

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

Electricity peak prices increased $2-9/MWh at all hubs except ERCOT. The ERCOT hub decreased $10/MWh trading as low as $27/MWh on Friday the 29th (see pages 1 and 3).

Gas prices at the Henry Hub increased $0.18 to $9.02/MMBtu due to a return of cold weather to most of the lower 48 states. According to EIA, prices in the Northeast region were the highest in the Nation, averaging $13.16 per MMBtu on Wednesday, February 27. The price increases in the Northeast region were by far the largest as a result of extreme cold in the region (see pages 1 and 3).

Estimated nuclear plant availability fell to 90 percent last week. Limerick 1 began a refueling outage and Turkey Point 3 and 4 shut down due to a power outage in Florida (see pages 2 and 4).

Uranium prices were $73 and $74/lb U3O8 according to TradeTech and UxConsulting. According to UxC, there was a flurry of activity last week, punctuated by a large purchase from an investment fund, with buying during the week accounting for about 40% of the total volume for the month. The market clearly found a “sweet spot” at prices between $70 and $75 where a number of deals have taken place (see pages 1 and 3).

West Texas Intermediate crude oil prices increased $5.34 from the previous week to $99.61/barrel. In the past two weeks, the price increased nearly $10/barrel (the fastest two week increase over the past 12 months) and is the highest weekly nominal WTI price ever recorded (see pages 1 and 3).
For the report click here. It is also located on NEI's Financial Center webpage.

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