Infinity Insights - Volume 11, Issue 12

AT-A-GLANCE SUMMARY
Spot month NYMEX natural gas (May) traded between 2.50ish and 2.60ish after filling a gap left on Monday, March 15th.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (May) support is 2.50 then 2.35 with resistance at 2.75. Balance of calendar year 2021 finds support at 2.65 with resistance at 2.85. Calendar year 2022 has support at 2.55 with resistance at 2.80.

Roadmap

NYMEX natural gas spot month (May) ended up $0.022 better at $2.557.

Balance of Calendar 2021
Balance of Calendar 2021 settled higher by ≈$0.05 at $2.735.

Calendar 2022
Calendar 2022 settled at $2.6325, ≈$0.004 up.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot month NYMEX natural gas (May) traded between 2.50ish and 2.60ish after filling a gap left on Monday, March 15th. Indicators have turned up. Buying weakness continues to provide reasonable procurement opportunities.

WHOLESALE POWER

ERCOT
Natural gas weakness continues to be offset by steady heat rate values.

Capacity capture seems preferable to floating LMP after February’s spike. Our current guess is that LMP pricing expectations are returning to pre-February levels BUT further verification prudent.

PJM

Weather has moderated with prices reflecting slowing demand.

Stay Safe!