Infinity Insights - Volume 11, Issue 28

AT-A-GLANCE SUMMARY
Prices began moving higher after taking a week+ pause.

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 3.40 with resistance at 4.00. Calendar year 2023 has support at 2.80 with resistance at 3.20.

Roadmap
NYMEX natural gas spot month (September) ended at $4.14, $0.226 up compared to last Friday’s Close.

Calendar 2022
Calendar 2022 settled higher by ≈$0.1325 at $3.5925.

Cal 2023
Calendar 2023 closed ≈$0.0775 better at $3.0425.

OUR TAKE ON THE MARKET

NYMEX Natural Gas
Prices began moving higher after taking a week+ pause. Technically, spot NYMEX natural gas (currently September) has an objective of $5.00. Calendar year strips are equally impressive with cal 2022 trading above 3.50 and cal 2023 above 3.00. Inflation, weather, and market bias continue to be prime movers.

The front of the curve is pricey compared to last several years. It looks to get pricier. How to manage this risk turns on the chances of selloffs versus further strengthening.

WHOLESALE POWER

ERCOT
Power prices fall under the same influences as natural gas. The prognosis for direction is likewise the same: Higher.

PJM

Power prices fall under the same influences as natural gas. The prognosis for direction is likewise the same: Higher