Infinity Insights - Volume 12, Issue 29

AT-A-GLANCE SUMMARY

The front of the NYMEX natural gas curve continues to trade between 7.50 and 9.50.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) support at 7.50 with resistance at 9.50. Calendar year 2023 finds support at 5.00 with resistance at 6.00. Calendar year 2024 has support at 4.20 with resistance at 5.50.

For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

Roadmap

NYMEX natural gas spot month (September) settled higher by $0.704 at $8.768

Cal 2023
Calendar 2023 finished up by ≈$0.32 at $5.685

Cal 2024
Calendar 2024 closed higher by ≈$0.135 at $4.80

The “Widow Maker” 2023

Volatility…

OUR TAKE ON THE MARKETS 

NYMEX Natural Gas

The front of the NYMEX natural gas curve continues to trade between 7.50 and 9.50. There has been a lull in the extreme weather and this has influenced the sideways action. This pause may turn on more extreme weather, perhaps with colder-than-normal winter expectations.

Some of our conversations with potential clients involve their reluctance to lock in rates that are dramatically higher than experienced in the past. While we understand this reluctance, it butts heads with realistic expectations. If you believe (as we do) that the evolution of the U.S. as a global natural gas supplier carries with it higher base price levels. We concern ourselves with loads taking month-to-month pricing (some in the high teens and higher) so they are able to capture $0.05ish prices. Our advice is to try to lock prices on pullbacks.

WHOLESALE POWER

ERCOT

Prices follow natural gas.

PJM

Continues to follow natural gas.