June 14, 2002 — ESAI’s latest Natural Gas Stockwatch forecasts a significant summer premium in both Transco Zone 6 and New England.
In the latest North American Power Market Watch, ESAI states that this premium could be extremely significant for the power market. “If loads are above-normal and gas-fired units have to start going to the spot market, we could see a jump in the cost of power,” says Jaya Bajpai, Power Analyst at ESAI, “And since all northeast mitigation regimes recognize fuel price rises, the power price rise would be immediate.”
ESAI’s Atlantic Basin Stockwatch forecasts steady prices for #6, a jump in #2 prices in August and significant rises in Jet (USGC 54) prices in the June-August period.
“Watch for prices to respond during above-normal loads, when fuel-oil fired peakers are likely to be on the margins,” says Bajpai.
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