Infinity Insights – Volume 8, Issue 7

AT-A-GLANCE SUMMARY

The $2.50 area for NYMEX spot month (March) has proved supportive.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (March) has support at 2.50 with resistance at 2.75 then 2.90 Calendar year 2019 has support at 2.73 with resistance at 2.85. Calendar year 2020 has support at 2.74 with resistance at 2.83.For a look at our monthly market reports, visit Infinity Power Partner's Market Overview.

Roadmap

NYMEX natural gas spot month (March) finished the week down $0.026 at $2.558.

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What’s This? – The “Roadmap” is the price action chart depicting the NYMEX natural gas spot month. It’s important because it is essentially the trading community’s market sentiment.

Cal 19

Calendar 2019 closed off ≈$0.01 at $2.7625.

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What’s This? – “Cal 19” is the first complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.

Cal 20

Calendar 2020 was lower by ≈$0.01 at $2.7675.

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What’s This? – “Cal 20” is the second complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.

OUR TAKE ON THE MARKET

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The $2.50 area for NYMEX spot month (March) has proved supportive. The “feel” of the natural gas market continues weak, evidenced by the March/April spread trading in the negative (“Widow Maker”). The back of the natural gas forward curve remains steady in this environment, yet the back of the ERCOT heat rate forward curve has been moving lower until this week.while the front of the curve continues to make new highs, spurred on by concerns for adequate capacity this summer.Wholesale power prices continue low but this week firmer with heat rate action. Natural gas shows little inclination to move dramatically one way or another in the deferred calendar strips.Value offered is higher than last week but still economic.