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May Natural Gas Futures Decline after 4-Day Rally (Part 1 of 2) Natural gas price action
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.
Natural gas futures for May delivery declined by 1.86%—led by warm weather estimates and rising inventory. Prices closed at $2.63 per MMBtu (British thermal units in millions) on Friday, April 17, 2015. The United States Natural Gas Fund LP ETF (UNG) tracks natural gas prices. UNG also declined by 1.63% and closed at $13.24 on Friday’s closing.
Last week, the EIA (U.S. Energy Information Administration) reported that weekly natural gas in storage rose by 63 Bcf (billion cubic feet) on April 16. This was the highest weekly inventory increase since November 6, 2014. It started putting pressure on gas prices. Prices increased unexpectedly on Thursday due to short covering. However, they started falling on Friday, April 17, 2015.
This is the fifth time that gas prices fell over the last ten days. Prices fell by 0.54% more on average down days than on average up days during the last ten trading sessions. Natural gas was the worst performer in yesterday’s trade. Gas prices followed their long-term downtrend—led by overproduction. Prices fell more than 10% YTD (year-to-date).
Energy ETFs like the Energy Select Sector SPDR ETF (XLE) and the Spider Oil and Gas ETF (XOP) fell in line with natural gas futures in yesterday’s trade. The S&P 500 also followed natural gas prices’ downtrend at the close of trade on Friday. Oil and gas exploration and production companies like WPX Energy (WPX), Chesapeake Energy (CHK), and Gulfport Energy (GPOR) also fell on Friday’s trade. These companies have a natural gas production mix greater than 68% of their total production. They account for 3.31% of XOP. These stocks are more sensitive to natural gas prices.
Continue to Part 2 Browse this series on Market Realist:
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 79.6 billions as of today (€ 74.7 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |