The natural gas storage report for the week ending 5/7 indicated an injection of 71 Bcf, driving total inventories slightly further below the 5-year average. While power LMP movement remained relatively stagnant, the futures continue their slow creep upwards.
The trend of small but steady gains continued this week for the remainder of the 2021 strip in all territories. Once again, CAISO is rising a bit steeper than anywhere else in the nation. From a longer-term perspective, backwardation remains strong in every ISO, with the exception of NY.
With warmth on the near horizon, power pricing will likely become very sensitive to any above-average cooling demand prior to the summer period. In the meantime, conditions remain favorable for budget-conscious customers to secure long-term coverage before the onset of summer heat.
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