Yesterday's natural gas storage report indicated an injection well above the 5-year average for the week, but slightly below the market's expectations. Near-term power market movement was relatively calm, with the exception of CAISO, where summer 2021 volatility continues, gaining back nearly all of the ground that was lost last week.
Longer-term futures saw very little week-over-week movement once again. While CY futures are trading almost identically in NEPOOL for '22 through '24, greater value can be found in long-term positions in ERCOT and CAISO, where backwardation is particularly strong.
While the opportunity to secure long-term budget-certainty into 2023 and beyond remains particularly viable, any shorter-term uncovered positions should be managed sooner rather than later, as the possibility of early heat looms as a potential volatility risk.
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