We are experiencing typical May weather with forecasts from 0 to high twenties, hopefully, everyone has been able to get out and enjoy the sunshine! With a full month of quarantine in April, we saw significant demand destruction and with it, low settles. April averaged $25.83/MWh, 65% lower than April 2019. We saw some movement in Cal’21 this week as thermal outages were moved from Winter to Spring.
Cash trading for gas has been strong over the past week, contributing to strength in the forward curve. April gas averaged 238% higher than April 2019, with weakness in the NYMEX basis and potential supply concerns as significant oil production has been shut in due to pricing.
Enbridge is looking at ways to store oil in it’s Mainline pipeline as concern over storage continues to grow for oil producers. The company is anticipating an additional two million barrels of storage for 2020. Storage levels are estimated to spike as high as 43 million barrels.