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Weather Impacted the Natural Gas Market: It Fell 8% in October (Continued from Prior Part) Price channel
December natural gas futures contracts have been showing the emergence of a downward trending price channel since October 2015. Prices were trading close to the key resistance of $2.30 per MMBtu (British thermal units in millions) on October 30, 2015. Weather and rising production are swinging natural gas prices.
Key pivots
A cold winter and lower natural gas prices are driving natural gas prices. Natural gas prices could see resistance at $3 per MMBtu. Prices hit this mark in April 2015. In contrast, long-term oversupply and rising production will drag natural gas prices lower. Natural gas prices could see support at $2 per MMBtu. Prices hit this mark in October 2015.
The EIA (U.S. Energy Information Administration) estimates that US natural gas prices could average around $2.80 per MMBtu in 2015 and $3.10 per MMBtu in 2016. Goldman Sachs (GS) forecasts that gas prices could average around $2.70 per MMBtu in 4Q15. The gas price chart suggests that natural gas prices could fluctuate between $2 and $2.60 per MMBtu in the short term.
US upstream players like Newfield Exploration (NFX), Cimarex Energy (XEC), Gulfport Energy (GPOR), and Comstock Resources (CRK) benefit from higher natural gas prices. These companies’ natural gas production mixes are greater than 49% of their total productions. They account for 5.4% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
The uncertainty in the oil and gas market also affects the Velocity Shares 3x Inverse Natural Gas ETN (DGAZ) and the iShares US Oil Equipment & Services ETF (IEZ).
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cimarex Energy is a producing company based in United states of america. Cimarex Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 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. |