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May 2024

Key Takeaways

Prices for both WTI and Brent dropped to a seven-week low last week. WTI was down 4.22% week-over-week to $75.85/barrel, and Brent was down 3.71% week-over-week to $81.17/barrel. Prices were impacted by strong U.S inventories, the prospect of a Middle East ceasefire agreement, and fading hopes for near-term U.S. interest rate cuts. The prompt month rose 32% to $2.14/MMBtu week-over-week. Production has fallen an estimated 5% since December, down to an average of 99.5 Bcf/day in April from the record high of 105 Bcf/day. New England electricity prices showed mixed movement over the past week, with the NEPOOL 12-month strip rising by 1.1% week-over-week to land at $56.29/MWh, while near-term calendar strips fell slightly. Upward pressure from anticipated natural gas demand and a hot summer forecast is tempered by mild forecasts for May and high gas storage.


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Formulating Strategic Commodity Procurement Plans to Navigate Market Fluctuations

By Keith Sampson, Senior Vice President, Energy Services

Many electricity and natural gas customers are actively contemplating their next steps regarding their future supply strategy. In my 17 years at Competitive Energy Services (CES), I have seen the current market trends before. I’ve learned from the past that energy market volatility is ever-present because these are traded commodities and that the solution to high price is high price and the solution to low price is low price.....




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CES Spring Virtual Seminar Registration is Open

Registration is open for Competitive Energy Services’ free online energy market seminar, titled “Energy & Renewables in Focus: Continued Price Stability or a Return to Volatility?”, which will be held on Wednesday, June 12 from Noon – 1:00 p.m. (including Q&A).



After three years of extreme volatility in energy markets, commodities prices have broadly stabilized for the near term. Will energy markets remain stable between the historic lows seen during the pandemic and historic highs seen in 2022, or will we see more price volatility? Lower inflation, strong domestic energy production and the addition of low-cost renewables is helping to keep prices low. Adverse weather conditions, escalating geopolitical tensions, and soaring shipping costs are among risk factors to keep an eye on.  

 

CES Energy experts will be on hand that day to cover top-of-mind energy topics, including:


💡 Commodities Markets – a review of energy commodities markets including future outlooks.


💡 A Fresh Look at the Demand Picture – looking out to projected electric load through 2030 and beyond.


💡 Understanding the Current Renewables Landscape – the headwinds and tailwinds facing renewable energy development over the coming decade and impact on consumers.


Photo by: Savushkin 

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CES Road Trip South Thomaston Solar Project

Recently, Simon Pritchard, Managing Director of Analytics, his partner Adrienne, and their dog Max embarked on a Midcoast Road Trip, which included a visit to the South Thomaston Solar Project in South Thomaston, Maine. Below Simon captures the experience in his own words:

 

“While spending a couple of days in the Midcoast region last weekend, 11-year-old adventure pup Max and I explored the St. George peninsula as my partner attended a one-day conference. We took a quick detour off ME Rt. 131 in South Thomaston, ME, heading down a gravel access road to take a look at Nexamp’s South Thomaston solar project. Covering 20 acres and totaling 4.4MW, the resulting amateur iPhone photos (see example below) do not do justice to the impressive scale of the project. However, Max decided the project was missing good sniffs, so we didn’t stick around. CES has contracted with Nexamp for a small portion of the solar net energy billing credits and renewable energy certificates from this project to provide our office in Portland with 100% renewable electricity. The project came online in late 2023.”


Photo by Simon Pritchard


CES offices are powered by 100% renewable energy. CES is under a long-term agreement with a new solar project located in Thomaston Maine that provides 100% renewable electricity to our headquarters. The solar project achieved commercial operations in late 2023. 

Have an Energy Question?

If you have a pressing energy question, or would like to hear about a particular topic in a future edition of the CES Insider, please contact us on our website today. We look forward to hearing from you!
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