| Natural Gas Prices Fall 24% in December: Will They Fall More? | |
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What Can Investors Expect from the Natural Gas Market? Natural gas prices fall
January natural gas futures fell by 2% and closed at $1.75 per MMBtu (British thermal units in millions) on Thursday, December 17, 2015. Prices fell due to the less-than-expected fall in the natural gas inventory. Gas tracking ETFs like the United States Natural Gas ETF (UNG) fell more than US natural gas prices in yesterday’s trade. UNG fell by 3.2% and settled at $6.92 on December 17, 2015.
US inventory
The EIA (U.S. Energy Information Administration) released its weekly natural gas in storage report on December 17, 2015. It reported that US natural gas stocks fell by 34 Bcf (billion cubic feet) for the week ending December 11, 2015. The data compiled by Bloomberg estimated that the natural gas in storage could fall by 43 Bcf for the same period. The less-than-expected natural gas drawdown weighed on natural gas prices. As a result, natural gas prices fell in yesterday’s trade. To know more about the inventory, read the next part of the series.
So far, natural gas prices fell by 24% in December 2015. Prices are trading close to the levels of March 23, 1999. Long-term lower natural gas prices impact natural gas producers’ profitability like EXCO Resources (XCO), Chesapeake Energy (CHK), Rice Energy (RICE), and Range Resources (RRC). Meanwhile, the latest forecasting models suggest that the weather could be warmer than normal this winter in the US. Mild winter weather is responsible for less drawdown in natural gas stocks.
Volatility picture
Natural gas prices fell for the sixth time in the last ten trading sessions. Prices fell by 0.9% more on the average down days than on the average up days. The US natural gas prices were among the mediocre performers in yesterday’s trade. So far, prices fell by 40% in 2015 due to record supplies, mild weather, and weak demand. Meanwhile, the S&P 500 (SPY) fell by 0.83 in 2015.
ETFs like the PowerShares DB Energy ETF (DBE) and the PowerShares DWA Energy Momentum ETF (PXI) are also impacted by the volatility in the oil and gas market.
Continue to Next Part 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$ 83.7 billions as of today (€ 78.2 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. |