Infinity Insights - Volume 11, Issue 2

AT-A-GLANCE SUMMARY
NYMEX spot-month natural gas (February) traded above 2.75 resistance supported by cold incursion. There has been no follow-through.

SUMMARY OF THE LAST WEEK IN CHARTS

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

Roadmap

NYMEX natural gas spot month (February) settled at $2.737, up $0.037.

Balance of Calendar 2021
Balance of Calendar 2021 closed ≈$0.0475 higher at $2.8275.

Calendar 2022
Calendar 2022 finished at $2.6925, ≈$0.045 better.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX spot-month natural gas (February) traded above 2.75 resistance supported by cold incursion. There has been no follow-through. An influence is the dramatic demand for LNG in SE Asia due to extreme cold. Prices are above $30/MMBTU, something that allows uncommitted cargoes to be redirected.

Technically, there is resistance at a $3 level with support at 2.50. What we glean from all this is for calendar strip at 2.50 being a reasonable value and 3.00 a tad expensive. Global weather is driving price movement.

WHOLESALE POWER

ERCOT

Demand remains low, reflected by heat rate weakness.

PJM

Prices are firm with weather influences.