Natural gas prices remain elevated but have stabilized after a push beyond $6.00 to $6.45 currently sitting around $5.40. The recent high coincided with that of LNG pricing points in Europe and Asia. European prices hit records of roughly $40/MMBtu last week and hit intraday highs of $55 before falling through the end of last week. Asian demand is also strong. Japan-Korea Marker (JKM) spot prices hit a record of $56.33 last week before plunging on market volatility by $20.72 the next day. The declines we mostly driven by Vladimir Putin remarks that Russia could stabilize energy supplies by sending more natural gas to Europe. Even with the drop in gas power prices have remained elevated with PJM WH Calendar 2022 On-Peak prices $4.00 higher than the last time gas prices where at these levels. The below chart illustrates that outsized move that we have seen in power with the prompt winter driving most of the gains:
