Infinity Power Partners - Volume 11, Issue 33

AT-A-GLANCE SUMMARY

Spot NYMEX natural gas (October) reached its objective at $5.00.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (October) support is 4.50 with resistance at 6.00. Calendar year 2022 finds support at 4.00 with resistance at 4.50. Calendar year 2023 has support at 3.10 with resistance at 3.50.

Roadmap
NYMEX natural gas spot month (October) finished $0.226 up at $4.938
compared to last Friday’s Close.

Calendar 2022
Calendar 2022 settled ≈$0.2275 higher at $4.11.

Cal 2023
Calendar 2023 closed ≈$0.15 firmer at $3.30.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot NYMEX natural gas (October) reached its objective at $5.00. The action was dramatic enough to see suppliers withdraw offerings until the dust settled. The action is consistent with what is a “dye in the wool” bull market.
 
As mentioned last week, the similarities between today’s market and the post “Katrina” and “Rita” market of 2005/2006 are intriguing. The next upside number is $6.00. Support is at $4.50. For energy procurers, this is troubling as the decision of when and where to buy is muddied with the realization that the next procurement will be markedly more expensive than previously experienced.

WHOLESALE POWER
ERCOT

Heat rates continue to decline, offsetting natural gas strength. Power prices are firm.

PJM

Prices higher following natural gas.