Infinity Insights - Volume 10, Issue 46

AT-A-GLANCE SUMMARY
NYMEX spot-month natural gas (January) found support at $2.40 area after dramatic free fall post-presidential election.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (January) support is 2.40 with resistance at 2.70 then 3.00. Calendar year 2021 finds support at 2.55 with resistance at 2.85, then 3.00. Calendar year 2022 has support at 2.55 with resistance at 2.85.

Roadmap

NYMEX natural gas spot month (January) ended the week at $2.591,
$0.015 higher compared to last Friday.

Calendar 2021
Calendar 2021 closed ≈$0.x0725 better at $2.695.

Calendar 2022
Calendar 2022 settled at $2.61, ≤$0.026 up.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX spot-month natural gas (January) found support at $2.40 area after dramatic free fall post-presidential election. Calendar tear 2021 likewise found support at $2.55 area. Drivers appeared to be short covering as open interest dropped with the week’s decline. The value offered is appealing to energy procurers but no guarantee of a turnaround. Remembering that procurement is covering an existing short position, letting others wear price risk is a prudent basis for decisions.

WHOLESALE POWER

ERCOT

Power prices continue to follow natural gas pricing with no significant change in heat rates (demand).

PJM

Power prices continue to follow natural gas pricing with no significant change in heat rates (demand).

Stay Safe!