Infinity Insights - Volume 10, Issue 35

AT-A-GLANCE SUMMARY
Spot NYMEX natural gas (October) fell precipitously with Hurricane Sally making landfall.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (October) support is somewhere around 2.00 with resistance at 2.25, then 2.50. Calendar year 2021 finds support at 2.80 with resistance at 3.00. Calendar year 2022 has support at 2.55 with resistance at 2.75.

Roadmap

NYMEX natural gas spot month (October) finished at $2.048, $0.221 lower
versus the close of last Friday.

Calendar 2021
Calendar 2021 closed at $2.945, ≤$0.015 lower versus last Friday.

Calendar 2022
Calendar 2022 ended at $2645, ≤$0.0025 firmer compared to last Friday.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot NYMEX natural gas (October) fell precipitously with Hurricane Sally making landfall. This is the expected reaction to weather that shuts things down and cools things off. Supply has nowhere to go as demand disappears.
 
Technically, we see the same disconnect discussed in earlier “Insights” between the balance of 2020 prices versus from January 2021 back. However, the bullish look of deferred pricing has been tempered and may offer more attractive price levels over the near future. Monitor changes for opportunities.
 
WHOLESALE POWER

ERCOT

Power prices have softened with natural gas, but not dramatically.

PJM

Power prices have softened with natural gas, but not dramatically.

Stay Safe!