Infinity Insights - Volume 11, Issue 9

AT-A-GLANCE SUMMARY
Spot month NYMEX natural gas (April) traded between 2.90 and 2.70 over the past week, closing around the 2.70 mark.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (April) support is 2.70 then 2.50 with resistance at 3.00. Balance of calendar year 2021 finds support at 2.85 with resistance at 3.10. Calendar year 2022 has support at 2.55 with resistance at 2.80.

Roadmap

NYMEX natural gas spot month (April) finished $0.07 down at $2.701.

Balance of Calendar 2021
Balance of Calendar 2021 was off ≈$0.0675 to settle at $2.8525.

Calendar 2022
Calendar 2022 settled at $2.6725, ≈$0.0175 higher.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot month NYMEX natural gas (April) traded between 2.90 and 2.70 over the past week, closing around the 2.70 mark. Action appears to be marking time for the next shoe to drop. Indicators are pointing to weakness, but not dramatically.

WHOLESALE POWER

ERCOT
Heat rates indicated a buy signal as the Valentine Day’s Freeze engulfed all providers:

Real-time pricing (LMP) resettlement prices are being worked out with loads switching to a fixed price, a probable cause for heat rate strength. The aftermath of this resettlement will be painful but ERCOT is doing a credible job in mitigation.

PJM

Power prices have declined as PJM hasn’t had the problems of ERCOT. It seems to be following weather, which is tempering.

Stay Safe!