| Natural Gas Prices Are Trading in a Narrow Range | |
| | |
|
Inventory and Weather Estimates Are Swinging Natural Gas Prices (Continued from Prior Part) Price channel
September natural gas futures contracts were trading close to the resistance of $2.80 per MMBtu (British thermal units in millions) on August 5, 2015. Gas prices settled close to $2.80 per MMBtu for the second day. Prices have been fluctuating between $2.70 and $2.90 per MMBtu for more than 30 trading sessions. The consensus of rising natural gas stocks and mild weather could drag natural gas prices lower.
Key support and resistance
Bullish traders could see resistance at $3 per MMBtu. Prices tested this mark in April 2015. Electric power plant demand and warm weather could support natural gas prices. In contrast, bearish traders could see support at $2.60 per MMBtu. Prices tested this level in May 2015. Mild weather could drag natural gas prices lower.
The natural gas price chart suggests that gas prices could fluctuate between $2.60 and $3 per MMBtu in the short term. Citigroup forecasted that natural gas prices could average around $2.70 per MMBtu in 2015 and $3 per MMBtu in 2016.
Falling natural gas prices impact the performance of ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG). They also affect oil and gas producers like Energen (EGN), Cimarex (XEC), and Apache (APA). These companies account for 3.24% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is greater than 59% of their production portfolio.
Browse this series on Market Realist:
|
|
|
Cimarex Energy Co.
|
|
|
CODE : XEC |
ISIN : US1717981013 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cimarex Energy is a producing company based in United states of america. Cimarex Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 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. |