Infinity Insights - Volume 11, Issue 37
AT-A-GLANCE SUMMARY
The keywords for natural gas price action over the last week are “volatility” and “nervousness.”
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (November) support is 5.50 with resistance at 6.00. Calendar year 2022 finds support at 4.30 with resistance at 4.60. Calendar year 2023 has support at 3.40 with resistance at 3.60.
Roadmap
NYMEX natural gas spot month (November) ended $0.054 lower at $5.565 compared to last Friday’s Close.
Calendar 2022
Calendar 2022 closed ≈$0.0425 better at $4.38.
Cal 2023
Calendar 2023 settled ≈$0.035 up at $3.4975.
OUR TAKE ON THE MARKET
THE "WINDOW MAKER"
Volatility…
OUR TAKE ON THE MARKETS
NYMEX Natural Gas
The keywords for natural gas price action over the last week are “volatility” and “nervousness”. The catalyst was Putin’s statement regarding European gas supply:
“Mr. Putin said Wednesday that Moscow was a reliable supplier that always fulfills all its obligations. ‘We can reach another record of deliveries of our energy resources to Europe, including gas this year,’ he said.”
Wall Street Journal
The market sold off from new highs back to mid to low $5. Action since has been sideways, reminiscent of pauses seen earlier, waiting for the next shoe to drop. The bull move is intact with calendar strips remaining close to highs. The lack of weather has added to the uncertainty of timing. We regard the current circumstance as buying opportunity.
WHOLESALE POWER
ERCOT
Power prices have retreated with natural gas action, but not significantly.
PJM
Prices continue to follow natural gas.