Infinity Insights - Volume 13, Issue 26

AT-A-GLANCE SUMMARY

Hot temperatures are at dangerous levels.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) support at 2.50 with resistance at 3.00. Calendar year 2024 finds support at 3.40 with resistance at 4.00. Calendar year 2025 has support at 3.90 with resistance at 4.35.

Roadmap
NYMEX natural gas spot month (September) finished off by $0.061 at $2.577
Compared to close of last Friday

Cal 2024
Calendar 2024 settled lower by ≈$0.105 at $3.56
Compared to close of last Friday

Cal 2025
Calendar 2025 ended down by ≈$0.03 at $3.8375
Compared to close of last Friday

The “Widow Maker”

2024

Volatility…

OUR TAKE ON THE MARKETS

NYMEX Natural Gas

Hot temperatures are at dangerous levels. However, this bullish situation has not evidenced itself with natural gas price spikes as prices have remained flat. Supply of this feedstock has not been challenged. Sideways action is expected to continue.

WHOLESALE POWER

The cost of generation (heat rates) is where volatility is found. Those jurisdictions most vulnerable (where the heat is most severe) have witnessed historic highs. We draw your attention to the values found in Texas (ERCOT) as seen in the charts, below. The front of these curves exacerbate the already-present price spikes as logic would expect. Avoiding the front of the curve is always a prudent strategy for procurement, even more so today.