| Natural Gas Prices Are Flat Ahead of the Stockpile Report | |
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Weak Demand and Weather Drive the Natural Gas Market Natural gas price movement
January natural gas futures contracts traded almost flat and closed at $2.07 per MMBtu (British thermal units in millions) on Tuesday, December 8, 2015. Prices were flat due to weak demand cues due to the warm winter weather forecast. Gas tracking ETFs like the United States Natural Gas ETF (UNG) rose slightly by 0.37% and settled at $8.11 on December 8, 2015.
Weather update
MDA Weather Services reported that warmer-than-normal weather could be experienced in the US during the next two weeks. In contrast, it’s expected that the second half of the winter could be colder than normal. It might boost the demand for natural gas in the coming weeks. It could benefit natural gas prices.
The EIA (U.S. Energy Information Administration) will release its weekly natural gas inventory report on December 10, 2015. Last week, natural gas stocks fell by 53 Bcf (billion cubic feet) for the week ending November 27, 2015. The preliminary surveys suggest that the natural gas inventory will likely fall by 60 Bcf for the week ending December 4, 2015. The consensus of the falling inventory could benefit natural gas prices.
Volatility analysis
The US CFTC (Commodity Futures Trading Commission) reported that hedge funds increased their short positions for the week ending December 2, 2015. The rise in the short positions suggests that hedge funds are bearish about the natural gas market. The long-term oversupply concerns dragged natural gas prices lower. Lower natural gas prices impact natural gas producers like ConocoPhillips (COP), Cimarex Energy (XEC), Newfield Exploration (NFX), and Devon Energy (DVN). The volatility in the oil and gas market also impacts ETFs like the Guggenheim S&P 500 Equal Weight Energy ETF (RYE) and the First Trust Energy AlphaDEX ETF (FXN).
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Devon Energy is a and oil producing company based in United states of america. Devon Energy holds various exploration projects in Canada. Its main exploration property is JACKFISH OIL SANDS PROJECT in Canada. Devon Energy is listed in United States of America. Its market capitalisation is US$ 27.2 billions as of today (€ 25.6 billions). Its stock quote reached its lowest recent point on August 18, 1995 at US$ 10.00, and its highest recent level on February 22, 2008 at US$ 99.19. Devon Energy has 525 000 000 shares outstanding. |