Infinity Insights-Volume 10, Issue 31

AT-A-GLANCE SUMMARY

Spot NYMEX natural gas (September) traded between 2.00 support and 2.30 resistance until Friday when it broke out to the upside.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) has support at 2.30 with resistance at 2.45. Calendar year 2021 finds support at 2.75 with resistance at 2.95. Calendar year 2022 has support at 2.55 with resistance at 2.70.

For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

Roadmap
NYMEX natural gas spot month (September) closed at $2.356, $0.118 8higher
versus the close of last Friday 

Cal 2021     
Calendar 2021 finished at $2.855, ≤$0.05 higher versus last Friday

Cal 2022
Calendar 2022 settled at $2.6025, ≤$0.0475 better versus last Friday

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot NYMEX natural gas (September) traded between 2.00 support and 2.30 resistance until Friday when it broke out to the upside. Technically, it looks like a bull flag. Calendar strips 2021 and 2022 moved through resistance at 2.75 and 2.55, respectively. Open interest had continued to fall until Thursday.
 
Incremental natural gas usage is mostly driven by weather. Cold in the winter and, as now, heat in the summer. The balance of summer’s temperatures is forecasted to be above normal. The presidential election is only 3-1/2 months away. For these reasons, we don’t expect large pullbacks, so procurement values are likely to remain what you see today if not higher.
 

WHOLESALE POWER

ERCOT

Natural gas strength is offset by declining heat rate values. Calendar strips are bunched together in what may be an indicator of a lack of direction for capacity cost.\

PJM
Prices have firmed with rising natural gas prices. That continues to be the primary influence.
Stay Safe!