| Natural Gas Prices Rally on Warmer Weather Forecast | |
| | |
|
Natural Gas Hits $3 per MMBtu despite Record Inventories Natural gas prices rally
This series provides an analysis of natural gas prices and fundamentals. 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 June delivery rose by 2.49% on Thursday. Gas prices surged due to warm weather estimates and closed at $3 per MMBtu (British thermal units in millions) on May 12, 2015. The US benchmark that follows ETFs such as the United States Natural Gas Fund LP ETF (UNG) also mirrored the price movement of natural gas prices. UNG rose by 2.95% and closed at $14.84 on May 14.
The EIA (U.S. Energy Information Administration) published the natural gas storage report on May 14, 2015. The weekly gas in storage increased by 111 Bcf (billion cubic feet) in the week ending May 8. Market consensus had been for an increase of 117 Bcf during this period. The lower-than-expected inventory increase supported the natural gas price increase. The gas stockpile increased by 76 Bcf in the week ending May 1.
Warmer weather forecasts across central and eastern parts of the United States in the second half of May 2015 also supported the natural gas rally. Cooling needs will drive the demand for natural gas from electrical power plants.
This is the fifth up day in the last ten days. Prices gained 1.85% more on the up days than on the average down days in this period. June natural gas futures ruled the chart against other commodities on yesterdays’s trading. Gas prices increased by 0.59% YTD (year-to-date), led by the warmer weather forecasts.
Volatility in natural gas prices affects oil and gas stocks like Cimarex Energy (XEC), Southwestern Energy (SWN), and Devon Energy (DVN), whose natural gas production mix makes up more than 46% of total production portfolios. These companies account for 3.57% of the SPDR Oil & Gas Exploration & Production ETF (XOP).
Continue to Prior Part Browse this series on Market Realist:
|
|
|
Devon Energy Corporation
|
|
|
CODE : DVN |
ISIN : US25179M1036 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Devon Energy is a and oil producing company based in United states of america. Devon Energy holds various exploration projects in Canada. Its main exploration property is JACKFISH OIL SANDS PROJECT in Canada. Devon Energy is listed in United States of America. Its market capitalisation is US$ 26.3 billions as of today (€ 23.1 billions). Its stock quote reached its lowest recent point on August 18, 1995 at US$ 10.00, and its highest recent level on February 22, 2008 at US$ 99.19. Devon Energy has 525 000 000 shares outstanding. |