Natural Gas Inventory Report, June 02, 2023

The Energy Information Administration released their weekly report on Friday.

The national inventory stock remains above 5 year average and is keeping pace with seasonal movements. As usual, the Pacific region is lagging, but showing significant gains each week.

Select regional spot prices: Natural gas spot prices fell at most locations this report week (Wednesday, May 24, to Wednesday, May 31), except for prices in the Northeast. Price changes at major pricing hubs this report week ranged from a decrease of 29 cents/MMBtu at the Waha Hub in western Texas to an increase of $3.30/MMBtu at the Algonquin Citygate in the Northeast.

Select inventories of EU and UK...

Prices continue to fall on the UK and EU markets. The UK spread of 12 month futures is annually at £1,441.34 ~ £2,174.50, with OFGEM setting the cap at £2,074. That cap is consistent with NatGas prices of £94.51 per Therm or $11.76 per MMbtu. November futures rise above the cap.

The lowering of the (annual) energy cap from £2,500 to £2,074 is certainly a great relief, however it was only 2 years ago, it was something like £1,200 annually for the average household. The monthly energy charges have fallen substantially and is reflected in the U.K. CPI. 

gas provided a downward contribution of 0.75 percentage points to the monthly change in CPIH

electricity provided a downward contribution of 0.67 percentage points to the monthly change in CPIH.

 

Energy costs have abated, but elsewhere is very troubling, in my humble opinion.