Infinity Insights - Volume 10, Issue 40

AT-A-GLANCE SUMMARY
NYMEX spot month natural gas (November) continued its range-bound trade until Wednesday when it penetrated $3.00 level.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (November) support is 2.75 with resistance at 3.25. Calendar year 2021 finds support at 3.00 with resistance at 3.25. Calendar year 2022 has support at 2.70 with resistance at 3.00.

Roadmap

NYMEX natural gas spot month (November) closed higher at $2.773,  $0.198
better compared to last Friday’s close

Calendar 2021
Calendar 2021 settled $0.02 lower at $3.06

Calendar 2022
Calendar 2021 settled $0.02 lower at $3.06

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX spot-month natural gas (November) continued its range-bound trade until Wednesday when it penetrated the $3.00 level. There has been little follow-through. The back of the curve continued its march higher as depicted in the charts of cal 2021 and cal 2022, above. Interestingly, open interest has declined, indicating short liquidation.
 
The presidential election is upon us. Our expectation is that either candidate’s victory will be bullish for natural gas (for different reasons). Trump’s success would be accompanied by a feeling of continued economic growth; Biden’s would be accompanied by a fear of tightening regulations, causing costs to move higher, lifting natural gas prices. The point here is that neither one will “bomb” natural gas prices.
 
We will soon distribute a special report to go into this in more detail.

WHOLESALE POWER

ERCOT

Power price is following natural gas higher.

PJM

Power price is following natural gas higher.

Stay Safe!