With relatively mild conditions over the week ending 3/26, we saw our first natural gas storage injection of 2021. Last year's coincident week was a withdrawal, as is the net 5-year average. Weekly market movement on the power side remained relatively lackluster for remaining 2021, with the exception of CAISO, which is showing some summer strip volatility in anticipation of heat.
While 2021 futures remain mostly stagnant, we are beginning to see a bit of upward movement in 2022 and beyond, right across the board. Index positions still remain favorable, however any degree of unseasonable warmth through this shoulder season will likely push positions higher.
Budget-conscious customers remain in an advantageous position to secure budget-certainty into 2023 and beyond, as this shoulder season's calm current state offers prime opportunity to take outer-year risk off the table.
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