November U.S. natural gas prices increased beyond previous market expectations

(Fri, 07 Dec 2018) On November 23, the natural gas spot price at the Henry Hub in Louisiana was $4.70 per million British thermal units (MMBtu), the highest price since a temporary spike in January 2018, and before that, the highest price since June 2014. The relatively sudden increase in prices exceeded the expectation of many market participants, based on the prices and volatility of futures and options contracts at the beginning of November. Prices have come down slightly in the past week, but they remain at a higher level than during much of the past four years.

EPA finalizes Renewable Fuel Standard for 2019, reflecting cellulosic biofuel shortfalls

(Thu, 06 Dec 2018) On November 30, 2018, the U.S. Environmental Protection Agency (EPA) issued a final rule for the 2019 Renewable Fuel Standard (RFS) program, with the total U.S. renewable fuel volume requirement set 3% higher than the 2018 mandate, but nearly 30% lower than the statutory volume standards set forth by the Energy Independence and Security Act of 2007 (EISA 2007).

U.S. coal consumption in 2018 expected to be the lowest in 39 years

(Tue, 04 Dec 2018) EIA expects total U.S. coal consumption in 2018 to fall to 691 million short tons (MMst), a 4% decline from 2017 and the lowest level since 1979. U.S. coal consumption has been falling since its peak in 2007, and EIA forecasts that 2018 coal consumption will be 437 MMst (44%) lower than 2007 levels, mainly driven by declines in coal use in the electric power sector.

Japan has restarted five nuclear power reactors in 2018

(Wed, 28 Nov 2018) Shikoku Electric Power Co. restarted the 890 megawatt (MW) Ikata-3 reactor in Japan’s Ehime Prefecture at the end of October, the fifth nuclear reactor in Japan to be restarted in 2018. Japan had suspended its nuclear fleet in 2013 for mandatory safety checks and upgrades following the 2011 Fukushima accident, and before 2018 only four reactors had been restarted.

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