Infinity Insights - Volume 12, Issue 9

AT-A-GLANCE SUMMARY

Spot month NYMEX natural gas (April) continues to range trade between 4.20 and 5.00.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (April) support 4.20 with resistance at 5.10. Balance of Calendar year 2022 finds support at 4.25 with resistance at 5.10. Calendar year 2023 has support at 3.90 with resistance at 4.10.

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

Roadmap

NYMEX natural gas spot month (April) ended up by $0.546 at $5.016 compared to last Friday’s close.

Balance of Cal 2022
Balance of Calendar 2022 finished up by ≈$0.525 at $5.15.

Cal 2023
Calendar 2023 settled higher by ≈$0.2025 at $3.935.

OUR TAKE ON THE MARKET

The “Widow Maker” 2023

Volatility…

NYMEX Natural Gas

Spot month NYMEX natural gas (April) continues to range trade between 4.20 and 5.00. There is a firmness to trade linked to crude oil strength because of the Ukrainian – Russian conflict. As discussed earlier, the lack of delivery for additional U.S. natural gas will probably limit upside potential. Winter is ending.

Natural gas procurement, either to the burner tip or as a part of power lock, is challenging with spot market volatility and deferred calendar strips at new highs. Do you chase price or wait, hoping for pullbacks? It’s a tough call. With power prices at or near 3.50 for Cal 2024 out, we prefer to wait, something that should be considered in light of your circumstances and risk tolerance.

WHOLESALE POWER

ERCOT

Price follows natural gas.

PJM

Price follows natural gas.