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Natural Gas: Why did the Physical and Futures Market Diverge? Natural gas prices slump
Below is our natural gas price fundamental analysis. For an in-depth look at natural gas and related companies, sectors, and drivers, please refer to our Energy and Power page.
June natural gas futures slumped by 2.71% on Monday. Prices declined on the consensus of mild weather estimates and settled at $2.80 per MMBtu (British thermal units in millions) on May 8, 2015. Gas ETFs like the United States Natural Gas Fund LP ETF (UNG) also followed the footsteps of natural prices. UNG fell by 1.56% and settled at $13.91 on May 11.
Frontier Weather reported that temperatures across the southern parts of the US will experience mild weather or below normal temperatures in the first half of May 2015. The government forecasting systems showed cooler weather in the Northeast and mid-Atlantic regions in the third week of May 2015. The normal weather will drive down the cooling needs and curb the short-term demand for natural gas prices.
On May 7, the EIA (U.S. Energy Information Administration) published the weekly natural gas in storage report. The government data showed that the weekly natural gas stockpile increased by 76 Bcf (billion cubic feet) for the week ending May 1. The next EIA report will release on May 14, 2015.
Natural gas prices declined for the fourth day in the past ten days. Prices increased by 1.48% more on the up days than on the average down days, over the same period. Natural gas futures for June delivery had the worst performance across all of the commodities on Monday’s trade. Prices declined 3.12% YTD (year-to-date)—led by oversupply concerns and mild weather.
Fluctuating natural gas prices impact oil and gas producers’ returns like Anadarko Petroleum (APC), Memorial Resources (MRD), and ConocoPhillips (COP). They account for 3.51% of the Spider Oil and Gas ETF (XOP). These stocks have a natural gas production mix that’s more than 43% of their total production portfolio.
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Anadarko
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CODE : APC |
ISIN : US0325111070 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Anadarko is a exploration company based in Canada. Anadarko is listed in Germany and in United States of America. Its market capitalisation is US$ 38.6 billions as of today (€ 34.5 billions). Its stock quote reached its lowest recent point on May 12, 1995 at US$ 10.00, and its highest recent level on May 23, 2014 at US$ 99.93. Anadarko has 531 000 000 shares outstanding. |