• Warmer-than-normal weather has persisted through the month and heating requirements are running 22% below the five-year average. In addition, the Freeport LNG plant continues to remain offline. The weather has remained mild in Europe and European LNG prices are dropping another $7/MMBtu from last month's level. The lower European LNG prices have caused wholesale basis to drop another $3/MMBtu and are now under last year's level.
  • The 12-month natural gas average price has dropped $0.36/MMBtu from last month and is now 2% lower than last year. The average 12-month Wholesale Energy price has also returned to last year's levels.
  • Looking out further, pricing for the calendar year 2024 strip remains nearly $20/MWh higher than last year. What we are seeing in the market is near-term price drops due to an expected short-term natural gas surplus. Future prices assume a return to a normal winter both here and abroad, which accounts for higher future prices.