Infinity Insights - Volume 12, Issue 8

AT-A-GLANCE SUMMARY

The question of what effect a Russian invasion of Ukraine on the domestic price of natural gas has been answered.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (April) support 4.20 with resistance at 5.00. Balance of Calendar year 2022 finds support at 4.25 with resistance at 5.10. Calendar year 2023 has support at 3.65 with resistance at 3.90.

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

Roadmap

NYMEX natural gas spot month (April) closed up by $0.093 at $4.47 compared to last Friday’s close.

Balance of Calendar 2022

Balance of Calendar 2022 ended higher by ≈$0.09 at $4.62.

Calendar 2023

Calendar 2023 closed up by ≈$0.005 at $3.735.

OUR TAKE ON THE MARKETS

The “Widow Maker”

Volatility…

NYMEX Natural Gas

The question of what effect a Russian invasion of Ukraine on the domestic price of natural gas has been answered. Prices knee jerked higher and then sold off. Despite increased demand, the realities of insufficient capacity to deliver additional LNG weighed on the market: Not enough tankers have uncommitted availability.

Looking past the question of European disruption, winter is coming to an end, with a corresponding end of heating demand. Spring usually sees weakening prices as the market readies itself for summer. Looking to buy weakness is more desirable than chasing strength and our recommendation.

WHOLESALE POWER

ERCOT

Power prices continue to follow natural gas, currently lower.

PJM

Power prices continue to follow natural gas, currently lower.