Infinity Insights - Volume 11, Issue 10

AT-A-GLANCE SUMMARY

Warming weather has found spot month NYMEX natural gas (April) defensive.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (April) support is 2.60 then 2.50 with resistance at 2.75 then 3.00. Balance of calendar year 2021 finds support at 2.85 with resistance at 3.10. Calendar year 2022 has support at 2.55 with resistance at 2.80.

Roadmap

NYMEX natural gas spot month (April) ended $0.101 lower at $2.60.

Balance of Calendar 2021
Balance of Calendar 2021 settled down ≈$0.095 at $2.755.

Calendar 2022
Calendar 2022 closed at $2.6325, ≈$0.0375 softer.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Warming weather has found spot month NYMEX natural gas (April) defensive. Support appears at 2.60, then 2.50 with resistance at 2.75. Other indicators point to weakness. That said, indicators also point to being oversold. A sideways track is a likely path without new input.

WHOLESALE POWER

ERCOT
Heat rates remain firm. LMP prices have returned to expected pricing in the teens. The resolution of pricing questions for the St. Valentine’s Day Freeze is a work in progress with indications that some mitigation will occur (we join our peer group’s hope for common sense answers).

PJM

Prices mirror natural gas.