Power prices for June across the major term trading locations continued to
show varied moves during the week ended May 23, as traders looked to continuing
losses for front-month natural gas futures alongside calls for widespread
warming in the weeks ahead that should boost demand for cooling.
The front-month gas contract today continued 6 cents higher to $4.46/MMBtu.
Short-covering leading into the long Memorial Day holiday weekend allowed
June natural gas futures to resume the upside Friday, May 23, with a 4.6-cent
advance to a finish at $4.405/MMBtu, even as fundamentals remain bearish. The
front-month gas contract ultimately ended the report period down 6.5 cents from
the Monday settle, for its fifth-straight week of decline.
Across the South, the value of June power parcels was pressured by weaker
natural gas futures, though the downside was limited by outlooks for warming
and robust cooling load in the weeks ahead. Power prices for June delivery at
ERCOT North eased 25 cents on the week, from $55.31 at the start of the review
period to $55.06 at the end of the review week.
