Infinity Insights - Volume 12, Issue 5

AT-A-GLANCE SUMMARY

Extreme weather has become more extreme and more frequent.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (March) support 4.40 with resistance at 5.00, then 6.00. Balance of Calendar year 2022 finds support at 4.50 with resistance at 5.50. Calendar year 2023 has support at 3.65 with resistance at 4.00.

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

Roadmap

NYMEX natural gas spot month (March) finished lower by $0.067 at $4.572 compared to last Friday’s close.

Balance of Cal 2022
Balance of Calendar 2022 ended ≈$0035 higher at $4.65.

Calendar 2023
Calendar 2023 settled up by ≈$0.0125 at $3.676825.

OUR TAKE ON THE MARKET

THE “WIDOW MAKER”

Volatility…

NYMEX Natural Gas

Extreme weather has become more extreme and more frequent. The cold weather incursion currently affecting most of the U.S. is reminiscent of last February’s polar vortex. NYMEX natural gas prices have spiked and failed, spiked and failed, and suppliers have backed away from offering quotes in this volatile environment. Those putting off decisions now have added additional risk. How one maneuvers this speed bump is not nearly as critical as avoiding it altogether.

The back of the curve lags and we continue to see deferred prices as expensive. Patience is advised.

WHOLESALE POWER

ERCOT

Front volatility from natural gas without much movement for heat rates.

PJM

Natural gas leads the way.