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Inventory and Natural Gas Rigs: Cues for Natural Gas Price Action (Continued from Prior Part) Trading range
Natural gas futures contracts for September delivery have been showing the emergence of a trading channel for almost two months. Prices were trading near the resistance of $2.80 per MMBtu (British thermal units in millions) on August 7, 2015. Weather and inventory estimates could play a vital role in driving natural gas prices this week.
Key pivots
The mild weather forecast and rising inventory estimates could drag natural gas prices lower. The key support for natural gas prices is seen at $2.60 per MMBtu. Prices hit this mark in June 2015. In contrast, the resistance for natural gas prices is seen at $3 per MMBtu. Prices hit this level in April 2015. The demand from power plants and warm weather could benefit natural gas prices.
The trading range suggests that natural gas prices could fluctuate between $2.60 and $3 per MMBtu in the near term. The estimates from Citigroup project that natural gas prices could average around $2.70 per MMBtu in 2015 and $3 per MMBtu in 2016.
The uncertainty in natural gas prices affects the performance of ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG). They also impact natural gas producers like Chesapeake Energy (CHK), Energen (EGN), and Cimarex (XEC). They account for 3.49% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is greater than 59% of their production portfolio.
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cimarex Energy is a producing company based in United states of america. Cimarex Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 8.3 billions as of today (€ 7.2 billions). Its stock quote reached its highest recent level on May 23, 2018 at US$ 99.89, and its lowest recent point on September 30, 2021 at US$ 87.20. Cimarex Energy has 95 438 121 shares outstanding. |