After easing a bit on Thursday, power prices at the daily markets could end
the workweek with gains Friday, May 23, amid generally stronger demand outlooks
through the start of the holiday-shortened workweek May 27 and a renewed upside
in natural gas futures trading.
Both power and gas markets are closed Monday, May 26, for Memorial Day.
At last glance, June natural gas futures were trading 2.3 cents higher to
near $4.382/MMBtu after tanking 11.4 cents in the prior session following the
report of a larger-than-expected and above-average build of 106 Bcf for the
week ended May 16. However, spot markets could favor the downside Friday, as
prices reconcile prior-day losses in futures and face a low-demand product
offering that will cover the three-day weekend.
In the South, demand in ERCOT is poised to reach a high at 48,570 MW on
Friday and 47,130 MW on May 26 before rebounding to 49,423 MW on May 27.
In the South, price action for June power slumped across the board to above
$57 at ERCOT Houston and to either side of $55 across the other ERCOT markets,
while power values for July were quoted in the low $70s overall.