Infinity Insights - Volume 11, Issue 27

AT-A-GLANCE SUMMARY
NYMEX natural gas spot month (September) paused as August expired, looking at 3.80 as significant support.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) support is 3.80 with resistance at 5.00. Calendar year 2022 finds support at 3.20 with resistance at 3.50. Calendar year 2023 has support at 2.80 with resistance at 3.00.

Roadmap
NYMEX natural gas spot month (September) closed at $3.914, $0.128 lower compared to last Friday’s Close

Calendar 2022
Calendar 2022 ended up ≈$0.0454 at $3.46

Cal 2023
Calendar 2023 went out ≈$0.08 higher at $2.965

OUR TAKE ON THE MARKET

NYMEX Natural Gas
NYMEX natural gas spot month (September) paused as August expired, looking at 3.80 as significant support. The calendar strips remain at their highs as 2022 approached 3.50. Weather is beginning to heat up and demand is rising. All of the ingredients for a volatile summer seem primed and ready to make decisions more difficult.

WHOLESALE POWER

ERCOT
Heat rates (cost of generation and capacity) backed off from their highs over the last week. The action wasn’t dramatic but noteworthy nonetheless. Our guess is that this is part and parcel of the pause mentioned in natural gas. Time will tell.

PJM

Prices continue to mirror natural gas.