Weekly Focus: Positively Charged News

Week Beginning April 10, 2023
The Environmental Protection Agency is expected to make an announcement on Wednesday in Detroit that could require up to 67% of new vehicles in the United States to be all electric. Analysts warn this is very ambitious, as less than 6% of new cars sold in the U.S. were electric in 2022.
Oil prices have been rising for the last three weeks as OPEC+ members have cut supply. Last week, crude prices jumped 6%. Monthly reports that will update oil demand and supply forecasts from OPEC are due on Thursday, and from the International Energy Agency on Friday.

Gasoline prices were about six cents higher per gallon on the East Coast last week, bringing the average to $3.357 per gallon. Compared to last year at this time, prices are down by $0.68 per gallon.
Diesel prices are trending downward, dropping about three cents per gallon this week on the East Coast. Diesel is averaging $4.226 per gallon this week. Compared to 2022, that is down about $0.70 per gallon.
Much like they have all year, propane prices are holding steady, averaging $3.46 per gallon this week.
Natural Gas
The NYMEX 12-month strip price dropped $0.21/dth last week as the market continues to look for a floor amid a lack of any real bullish news. 
Supply factors continue to concern the market as domestic production shows continued strength in early April, averaging almost 100 Bcf/day vs. 98.7 Bcf/day in March. This strong production is not helping the gas storage overhang much. Last week saw a withdrawal of 23 Bcf, leaving stocks at about 1.83 Tcf for the season, about 19% above the five-year average and 32% above last year’s levels for this week in the year. It is expected this withdrawal will mark the end of the withdrawal season with this week projected to have an injection of about 40 Bcf into storage. 
Pricing levels don’t usually get much help from demand this time of year with diminished heating demand and strong cooling demand still weeks away. Domestic LNG feedgas demand has been strong in early April, averaging almost 14 Bcf/day, but this has done little to ease market sentiment. Current May forecasts are showing a chance for warmer than average temperatures in the important Texas area, but this may not lead to the strong, sustained cooling demand that a similar forecast would for the June-August period. The market may be in this low trading range until some needle-moving summer forecasts begin to take shape.
Similar to last week, with winter behind us, the market continues to look for any changes to the spring/early summer weather forecasts, which to date have not given the market any reason to move prices up. The market will now begin to follow storage injections for any signs that the current overhang can be whittled down.
Power forwards were up $1/MWh last week for the 12-month strip, and the market traded up early on Monday. NYISO UCAP was mixed with some small changes. Overall, the New York City capacity market continues to lack liquidity. NJ and PA Class 1 RECs were up 1%, while Class 2 RECs were up 8%. 
Pennsylvania law makers are pushing for more solar projects in the state. Rep. Perry Strambaugh has proposed a law that could legalize community solar, giving residents the chance to purchase green energy without having to install solar panels.
Mechanical Services
For New York City customers, Energo provides a full slate of mechanical services, including boiler and burner tune-ups, installations, and more.