With an Easter long weekend and trading holiday, power prices remained low – averaging $28.65/MWh, a 9% decrease week over week. Demand destruction continued across the province and wind generation was above forecast, pushing settles below $30/MWh. The balance of 2020 continues to trade down, but the rest of the forward curve remains flat.
Gas prices remain consistent – averaging $1.91/GJ. The forward curve continues to trend up, increasing ~$0.10/GJ across all terms. Field receipts are ~12Bcf and with no significant planned maintenance, are expected to stay at this level. The storage deficit that was significant at the beginning of the winter contract is now expected to be eliminated by the end of the month.
OPEC+ discussions continued over the weekend, landing on a 9.7 million barrel per day cut, roughly 10% of global supply. Even with the announcement of cuts, prices failed to make significant gains. The current global demand is down ~30% due to COVID-19, so there is still considerable excess supply available to the market.