Infinity Insights-Volume 10, Issue 32

AT-A-GLANCE SUMMARY

NYMEX natural gas spot month (September) traded up to 2.50 resistance, pulled back to 2.30ish support, and ended the week again at the highs, spurred by the approach of tropical weather (even though it’s usually a bearish event, with facilities shut down and temperatures cooling).

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) has support at 2.30 with resistance at 2.50. 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.

Roadmap
NYMEX natural gas spot month (September) closed at $2.448, $0.092 higher
versus the close of last Friday.

Calendar 2021
Calendar 2021 finished at $2.9125, ≤$0.055 higher versus last Friday.

Calendar 2022
Calendar 2022 settled at $2.645, ≤$0.0425 better versus last Friday.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX natural gas spot month (September) traded up to 2.50 resistance, pulled back to 2.30ish support, and ended the week again at the highs, spurred by the approach of tropical weather (even though it’s usually a bearish event, with facilities shut down and temperatures cooling). More impressive was the recent highs for calendar strips 2021 and 2022. The action is bullish, marking time as winter approaches.
 
The contangoed curve for the rest of 2020 will lift each spot month higher without some dramatic change in the market. It poses a problem for those needing to procure energy: you’re at the highs with little indication of pullbacks on the horizon. Do you buy the trend even at the highs? No easy answers here.

WHOLESALE POWER
ERCOT

Heat rates are counter-balancing the strength in natural gas. Prices are steady.

PJM

PJM continues to firm with higher natural gas.

Stay Safe!