Infinity Insights-Volume 10, Issue 12
AT-A-GLANCE SUMMARY
Spot NYMEX natural gas (April) expires today. There are no fireworks as trade is low volume and low volatility. SEE: “COVID – 19” at end of Insights.
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (May) has support at 1.55 with resistance at 1.75. Calendar year 2021 finds support at 2.35 with resistance at 2.50. Calendar year 2022 has support at 2.35 with resistance at 2.42.RoadmapNYMEX natural gas spot month (May) closed lower by $0.004 at $1.671.Calendar 2021Calendar 2021 ended ≤$0.07 better at $2.45.Calendar 2022Calendar 2022 settled at $2.39, up ≈$0.04.
OUR TAKE ON THE MARKET
NYMEX Natural Gas
Spot NYMEX natural gas (April) expires today. There are no fireworks as trade is low volume and low volatility. The indicators we follow are as confusing as the virus is. Patience is probably a good thing until there’s evidence of a return to order. There has been a rally from the lows of Monday. It would be helpful if there was a retest of lows to see if that is a bottom. We don’t know. This is new to us as well.
WHOLESALE POWER
ERCOTStatic pricing is our way of describing price action. Folks are seemingly procuring on a hand-to-mouth basis. Price isn’t an obstacle but the unknown is and deserves attention.PJMWinter is all but gone and natural gas is as described, i.e., marking time. Procurement can be executed, also in a static environment.
COVID-19
COVID-19 is a health pandemic, unlike anything anyone has experienced in our lifetime. While the economy is certainly taking a hit, it’s temporary as we will defeat this threat. All of us are in this together and we need to remember that what impacts one, impacts all. Thankfully, heroes in every part of society are keeping us whole, either first responders, medical personnel, truck drivers, grocers, druggists, and many, many more. Our part is to stay put and not help spread this virus.Utility, government, and corporate leaders are aware of the concerns we all have about changes in energy usage. Many of you will see business usage drop while residential use will climb. There’s no fault on anyone’s part, it just is. In ordinary times, increased and decreased usage would pose financial issues for suppliers and users. Not here, not now.
http://interchange.puc.texas.gov/Documents/50664_107_1057678.PDF
Regulators and industry are adjusting to circumstances, such as no disconnect orders, deferred payments, and waiver of penalties. Whatever the specifics, this black swan event is recognized and responded to throughout the country. We have communicated with our client base to see if we can help. Now is the time to be a good neighbor.Stay safe!